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Supply chain issues and surging post-pandemic demand in several parts of the economy mean construction and materials costs have surged in recent years and remain high, leaving you without much budget to undertake a thorough refurbishment. You go for a pared-back, basic option: no amenities, minimal upgrade to things like insulation and HVAC, meaning your building is a bit more energy-efficient, but not much.
Here’s the thing: Your building may find a tenant, but it is far from certain, as companies look for the best quality space in order to attract and retain the best staff. Even if you do find an occupier, it is likely to be at a highly discounted rent.
The basic option may leave you with a building far less valuable than you had forecast, putting pressure on financial covenants and maybe even leading to bankruptcy. Perhaps you should have sold rather than undertaken the refurb yourself. Better luck next time.
Don't like where you've ended up? Start over!
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