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5 Ways Replacement Siding Can Save (or Make) You Money


5 Ways Replacement Siding Can Save (or Make) You Money

The goal of investing in commercial properties is to make money. Thus, commercial property investors should consider any commercial construction project that will provide a return on investment (or ROI). Whether your commercial construction renovation project is a rental home, office building, retail space, or restaurant, a shoddy exterior can disproportionately affect the value of that commercial space. Here are five ways that siding replacement by commercial contractors can produce a positive ROI:

Curb Appeal

In combination with landscaping, a commercial property’s exterior forms the curb appeal of the property. Curb appeal is important for two primary reasons:


  1. Curb appeal is considered by prospective tenants in deciding whether to rent space in your commercial building. The curb appeal of a business’s building can project a negative image of the business to its customers and clients, and no business can survive when customers and clients decide to take their business elsewhere.
  2. Curb appeal can affect the rental value of a commercial building. Studies show that commercial landlords can charge 7% higher rent for commercial buildings with high curb appeal.

Thus, renovating the exterior of a commercial construction with replacement siding could pay for itself in higher occupancy rates and higher rental rates.

Resale Value

The exterior of commercial construction is considered not only by potential tenants, but also by potential buyers when it comes time for you to sell your commercial building. By some estimates, an appealing exterior and landscape can increase the selling price of a building by somewhere between 5% to 7% from its median value. Conversely, old, worn siding can reduce the selling price by as much as 10% from its median value. Thus, siding replacement from a commercial construction company can contribute to a 17% swing in selling price. For a commercial building with a median value of $1 million, this could mean an extra $170,000 in your pocket.

Energy Efficiency

Damaged or loose siding allows a pathway for outside air to infiltrate your residence. This means higher heating costs during winter and higher cooling costs during summer.

Moreover, siding provides protection for the insulation in the walls from the elements. Avoiding this damage is essential to maintaining the integrity of the building.

Even in commercial construction where tenants pay for the utilities within their space, energy costs in common areas are the responsibility of the commercial building owner. More importantly, you might experience unhappy tenants who will not renew their leases.

Water Damage

Damaged siding can also allow water to penetrate the commercial building. Water damage can be very costly to repair, particularly if the water causes the frame to rot, damages drywall, or fries the electrical wiring. And do not expect your commercial building insurance to pay for the damage. If your insurance carrier determines the damage occurred due to a lapse in maintenance, it can deny your claim.

Aside from damage to the commercial building, your tenants’ property or even their lives could be at stake from water damage. Water damage can weaken the structure and place the building at risk of collapse. Moreover, any water damage that shorts out the electrical system can damage or destroy your tenants’ computer equipment and create the risk of electrocution.


Mold remediation is one of the highest cost commercial construction projects possible. There are a few reasons for this:

  • Mold remediation requires special safety equipment for workers, so not all commercial contractors do mold remediation.
  • Mold can be difficult to find since it can grow inside the wood frame, insulation, drywall, carpet pad, and carpet.
  • Chemicals for treating mold can be expensive.
  • If mold growth is extensive, framing members, drywall, insulation, carpet, and carpet pad may need to be replaced.

The cost of mold remediation alone may justify replacing damaged or loose siding. Adding in the risk and cost of reduced energy efficiency and water damage, as well as the lost benefits of curb appeal and increased sale price, there is a clear case to be made for replacing siding.

When you’re ready to invest in commercial construction, rely on the experts of Pro Home Services to transform your property.





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