The key to a realistic timeline If you're planning to build a commercial building, one of the first questions you might have is, “How long will it take?” Whether you’re facing the urgency of a lease expiring, preparing for new business opportunities, or needing space for new equipment, knowing the timeline for your building project is crucial. At XL Structural, we understand that time is of the essence, and we want to help you get a realistic understanding of what’s possible. Why realistic timelines matter It's not uncommon for contractors to promise short timelines to secure your business, only to see those timelines slip due to unforeseen challenges. What separates successful projects from those that miss deadlines? A clear understanding of the key factors that affect the construction timeline, combined with proactive planning and decision-making. Key steps to building your commercial project on time To ensure your project stays on track, it’s critical to understand not just what you want to hear, but what’s actually feasible. Here’s a step-by-step approach to help keep your project on time: 1. Start with a clear brief The clearer you are about your requirements from the beginning, the more likely the project will stay on schedule. A comprehensive project brief should include detailed descriptions of your building’s purpose, specifications, and any specific requirements for equipment or operations. A clear brief minimises the back-and-forth with contractors and reduces the chance of misinterpretation, which can lead to costly and time-consuming changes down the line. 2. Establish a streamlined decision-making process If multiple stakeholders are involved, designate a project leader who can make final decisions or expedite approvals. This avoids delays that can arise from indecision or conflicting opinions. Use regular progress meetings to keep everyone informed and ready to make decisions when needed. Establishing a clear decision-making hierarchy and sticking to it can significantly reduce bottlenecks. 3. Understand compliance requirements Compliance can significantly impact timelines. Before breaking ground, familiarise yourself with local building codes and regulations. Your project will need several approvals, including building consents, resource consents, and possibly fire safety plans. These approvals can take time, especially if there are complications or additional information is required. Engage with compliance experts early to identify any potential issues and address them proactively. A well-prepared compliance plan can help avoid delays in the approval process, which are common reasons for project timeline extensions. 4. Plan for geotechnical and environmental reports Some sites may require geotechnical reports to assess soil stability, which can affect the foundation design. Environmental assessments may also be necessary, particularly if the site is near sensitive ecosystems or requires remediation of existing pollutants. Knowing these requirements upfront allows you to incorporate them into your timeline and budget. Failure to anticipate these needs can lead to unexpected delays and added costs. 5. Decide on early contractor involvement Engaging the right contractor early in the process allows for more accurate assumptions and better planning. Look for contractors who do what they say they will and who are honest about what’s possible. An early contractor involvement (ECI) approach allows you to establish relationships and expectations before formal contracts are in place, leading to better collaboration and trust. It also means that your contractor can contribute to the design process, suggesting cost-effective and time-saving construction methods. 6. Consider splitting building consents To streamline the approval process and start construction sooner, consider splitting building consents into separate phases. This approach allows you to start site preparation and foundational work while detailed designs for other parts of the building are still being finalised. By lodging consents for different phases separately, you reduce critical path time, making the project more efficient. However, it’s important to split consents at logical points that align with council and design requirements to ensure smooth processing. 7. Early procurement of materials Identify what materials and equipment can be ordered or prepared early to reduce delays. This includes long-lead items like steel, specialised equipment, or custom-made components. Early procurement ensures that critical materials are available when needed, rather than causing work stoppages. Discuss with your contractor what can be pre-ordered to avoid delays, especially for items that may be affected by supply chain issues. 8. Choose design + build for faster results Working with a contractor that offers integrated design and build services can speed up the process by allowing more concurrent work. This approach means that design development and construction planning happen simultaneously, reducing the overall project timeline. Design-build firms like XL Structural manage both design and construction in-house, ensuring better communication, fewer misunderstandings, and more cohesive project execution. This approach also streamlines the change order process since the same team handles modifications from design through construction. 9. Implement robust project management practices Effective project management is crucial for staying on schedule. Use detailed project scheduling software that outlines each phase of the project, identifies critical path activities, and tracks progress. Regularly review these schedules with your contractor to ensure that milestones are being met. Discuss any deviations immediately and develop strategies to get back on track. Project management tools can also help coordinate the work of subcontractors, ensuring that each party knows their role and deadlines. 10. Plan for risk, not just speed It's not just about how fast you can go but also understanding the risks that might affect your timeline. Be aware of potential extensions of time (EOT), which might be needed due to bad weather, supply chain disruptions, or unforeseen site conditions. Ask your contractor about these risks upfront so you can plan accordingly. Don’t just hope for the best; understand the worst-case scenarios and how to mitigate them. Engage in regular risk assessment sessions with your contractor to identify new risks as the project progresses and develop contingency plans. 11. Ensure quick, informed decision-making Delays often occur because of slow decision-making. Work with a contractor who communicates clearly about what decisions need to be made, when, and the impact of delays. This includes being ready to make decisions about changes in scope, materials, or methods that may arise during construction. Make sure you are prepared to make prompt and informed decisions, balancing speed with the need for thoughtful, well-considered choices. Ensure that all stakeholders are on the same page and understand the implications of delays in decision-making. 12. Consider a staged handover for early operations Consider a staged handover approach to get operational sooner. This means different parts of the building can be handed over for use while other sections are still under construction. For instance, you might be able to start installing equipment in one part of a warehouse while another area is still being finished. Collaboration with your contractor on a staged handover can significantly speed up your move-in process, allowing you to begin operations and generate revenue sooner. Success lies in the details The key to keeping your commercial building project on time isn't just about finding the contractor who says they can do it the quickest — it’s about finding one who understands the details, plans for risks, and keeps open lines of communication to ensure the project moves forward at speed. By starting with a clear brief, understanding compliance, making early decisions, and choosing a design + build contractor, you’ll be well on your way to seeing your commercial building project completed on time. At XL Structural, we’re committed to providing not only quality construction but also achieving key milestone timelines. We understand the challenges of commercial construction and have the expertise to guide you through every step of the process. Ready to find out how XL can fast track your commercial build project? Contact us today, and let’s start building your success.

Are you a busy business leader curious about potential new insurance costs or puzzled by a recent surge in insurance premiums for a new build? Understanding these costs is crucial for keeping your budget on track and avoiding compliance issues. At XL Structural, we recognise the challenges of managing budget constraints and meeting regulatory requirements to ensure your buildings are both compliant and cost-effective. In this article, we’ll explore the key factors influencing the cost of insurance for commercial and industrial buildings. We'll address common concerns and provide valuable insights to help you make informed decisions and effectively manage your insurance expenses. Building Location The location of your building plays a significant role in determining your insurance costs. Insurers evaluate the risk associated with the geographical area where the building is situated. Factors such as crime rates, natural disaster risks (like earthquakes, floods, and storms), and proximity to fire stations and hydrants are considered. Buildings in high-risk areas tend to have higher insurance premiums. Conversely, buildings in areas with lower risk profiles may benefit from reduced premiums. For example, Christchurch's earthquake-prone regions typically see higher premiums due to increased risk, whereas buildings in Auckland might have lower premiums due to a relatively lower seismic risk. Climate Change Impact It is impossible to ignore the impact of climate change on insurance costs. The frequency and severity of severe weather events are increasing globally, leading to higher premiums as insurers seek sustainable pricing models. In New Zealand, flooding has been the most common weather event, accounting for over 90% of losses from natural disaster claims since January 2021. The New Zealand Government's National Adaption Plan, published in April 2022, outlines actions to address climate-related risks, reflecting the growing need for buildings to be resilient against such events. Building Construction and Materials The construction type and materials used in your building can greatly influence your insurance costs. Buildings constructed with fire-resistant materials, such as concrete or steel, generally attract lower insurance premiums compared to those made with wood or other combustible materials. Fire-resistant buildings are less likely to suffer extensive damage in a fire. Additionally, modern construction techniques and materials that enhance structural integrity and resilience to natural disasters can also result in lower premiums. In high seismic risk areas, the use of materials such as Expanded Polystyrene Panel (EPS) and Aluminium Composite Panel (ACP) requires robust risk management procedures, and insurers may limit coverage or increase premiums based on these factors. Building Size and Usage The size of your building and its intended use are also crucial factors. Larger buildings typically have higher insurance costs because they represent a greater risk to insurers in terms of potential loss. Similarly, the usage of the building impacts insurance premiums. For example, a warehouse storing flammable materials will have higher insurance costs compared to one storing non-flammable material. It's essential to accurately communicate the purpose of your building to your insurer to ensure appropriate coverage and cost estimation. Safety and Security Measures Investing in safety and security measures can significantly reduce your insurance premiums. Insurers favour buildings equipped with robust security systems, fire alarms, sprinkler systems, and other safety features. These measures lower the risk of damage and loss, making your building a safer bet for insurers. Installing surveillance cameras, security lighting, and access control systems can further enhance security and potentially lower insurance costs. In New Zealand, adhering to the Building Code’s safety requirements, which were updated in 2023 to include more stringent fire safety measures, can also be beneficial. Building Age and Condition Older buildings often have higher insurance costs due to their increased risk of structural issues, outdated electrical systems, and plumbing problems. Insurers may require a thorough inspection of older buildings to assess their condition before providing coverage. If the building is well-maintained and has undergone recent renovations or upgrades, it can help in securing lower premiums. Regular maintenance and timely repairs are crucial in keeping insurance costs in check for older buildings. For instance, buildings in Christchurch that have been retrofitted to meet earthquake safety standards often benefit from lower insurance premiums. Claims History Your claims history as a business owner can impact the cost of insurance for your commercial or industrial building. If you have a history of frequent claims, insurers may view you as a higher risk, leading to higher premiums. On the other hand, a clean claims history can work in your favour, potentially resulting in lower insurance costs. It's advisable to implement risk management practices to minimize incidents and claims, thereby supporting a favourable claims history. This is especially relevant in New Zealand where the Earthquake Commission (EQC) plays a significant role in claims related to natural disasters. Coverage and Policy Type The type and amount of coverage you choose for your building will directly affect your insurance costs. Comprehensive policies that offer extensive coverage, including protection against a wide range of risks, will naturally be more expensive than basic policies with limited coverage. It's essential to strike a balance between adequate coverage and affordability. Discuss your specific needs with your insurer to tailor a policy that provides the necessary protection without overburdening your budget. The Insurance Council of New Zealand (ICNZ) provides guidelines on understanding policy terms and coverage options. Under-Insurance Risks The COVID-19 pandemic has underscored the risks of under-insurance. High inflation, supply chain disruptions, and extended building costs have all contributed to increased claims costs. Ensuring your building's sum insured reflects current building costs is critical to avoid under-insurance, especially for specialised equipment and machinery that may have longer replacement times and higher costs. Recent data from the Reserve Bank of New Zealand shows an increase in construction costs by approximately 8% over the past year, highlighting the importance of regularly updating your insurance coverage to reflect these changes. Regulatory Compliance Compliance with local building codes and regulations can influence your insurance costs. Buildings that adhere to the latest safety and construction standards are generally viewed more favourably by insurers. Non-compliance or failure to meet regulatory requirements can result in higher premiums or even difficulty in obtaining insurance coverage. Ensuring that your building meets all necessary regulations not only promotes safety but also helps in managing insurance costs. The upcoming Financial Markets (Conduct of Institutions) Amendment Bill will further emphasise the need for compliance and may impact how insurance products are priced and offered. Deductibles Choosing a higher deductible can lower your insurance premiums. The deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in. By opting for a higher deductible, you take on more risk, which can result in reduced premiums. However, it's important to choose a deductible that you can comfortably afford in the event of a claim. Balancing deductibles and premiums are a key consideration in managing your insurance costs effectively. Risk Management Practices Implementing effective risk management practices can have a positive impact on your insurance costs. Conduct regular risk assessments to identify potential hazards and take proactive measures to mitigate them. Employee training programs, routine safety inspections, and emergency preparedness plans are all part of a robust risk management strategy. Demonstrating to insurers that you have comprehensive risk management practices in place can lead to lower premiums and better coverage terms. Insurance Provider Finally, the choice of insurance provider can also affect your insurance costs. Different insurers have varying risk appetites, pricing models, and discount programs. It's crucial to shop around and compare quotes from multiple insurers to find the best coverage at a competitive price. Working with an experienced insurance broker can help you navigate the options and identify the most suitable insurance provider for your specific needs. Conclusion Understanding the factors that affect the cost of insurance on commercial and industrial buildings is essential for effective budget management and risk mitigation. By considering the building's location, construction, size, usage, safety measures, and more, you can make informed decisions that optimise your insurance expenses. Implementing risk management practices and maintaining compliance with regulations further enhances your ability to secure affordable and comprehensive insurance coverage. Remember, the right insurance policy is a critical component of protecting your investment and ensuring the long-term success of your business.

Securing finance for your commercial build is a step that requires careful consideration before progressing with your project. For business owners and new developers, navigating the specifics of commercial property financing in New Zealand can be a confusing process. In this article, we outline the things to consider before approaching a financer, helping you navigate the process with confidence. Understanding Equity Requirements One of the first questions you'll need to address is how much equity you need. In New Zealand, banks typically need a substantial amount of equity before they will finance a commercial build project. This is generally around 40-55% of the total project cost, but it can vary depending on the nature and location of the project, your credit history, and your relationship with the bank. Rule of Thumb: For smaller projects (up to NZD 5 million), expect to provide at least 40% equity. For larger projects (over NZD 5 million) or riskier projects, the equity requirement can increase up to 50% or more. Equity can come from various sources, including existing property, cash savings, investments, mezzanine financing, private investors, and equity partnerships. It's important to prepare a detailed financial statement outlining your equity sources to present to the bank. The Bank's Lending Process Banks have a structured process they follow to assess and approve commercial building finance. This typically includes several stages: Preliminary Assessment: Initial evaluation of your project, credit history, and financial strength. Approval in Principle (AIP): A conditional approval based on preliminary information. Detailed Due Diligence: In-depth analysis of your project plans, including feasibility studies, designs, and consents. Final Approval: Once all conditions are met, the bank issues final approval and prepares the loan documents. At each stage, the bank will scrutinize various aspects of your project, including: Design and Consents: Banks typically prefer that you have detailed designs and necessary consents in place before they commit to financing. This demonstrates the project's viability and reduces the risk. Construction Contract: Banks look for contracts with reputable contractors to mitigate risks associated with cost overruns and delays. Bank's Criteria for Contract Structure The structure of your construction contract is something the banks will consider. Banks favour contracts that minimise their risk and provide clarity on the project's scope, timeline, and costs. Here are some key elements banks look for in a contract: Fixed-Price Contract: A fixed-price contract specifies a set price for the construction work, which reduces the risk of cost overruns. Reputable Contractors: Banks prefer contracts with established and reputable contractors who have a proven track record. Clear Milestones: Defined milestones and payment schedules help banks monitor project progress and ensure funds are released in stages. Contingency Plans: Including contingency plans for unexpected issues (e.g., cost increases, delays) is a sign of thorough planning and reduces risk. If you plan to undertake parts of the project yourself, such as earthworks or fit-out, make sure to discuss this with the bank early on. They will want assurance that you have the ability and resources to manage these aspects without jeopardising the project's success. Involvement of Quantity Surveyors (QS) and Valuers These professionals provide independent assessments of project costs and value, which banks rely on for their due diligence. At XL Structural, we have in-house QSs who handle the pricing of your project, ensuring accuracy and ease throughout the process. When to Involve QS and Valuers: Feasibility Stage: Engage a QS early to help estimate costs and prepare a detailed budget. This can strengthen your financing application. Pre-Construction: A QS can prepare a comprehensive cost plan, while a valuer can provide an initial project valuation. During Construction: Regular QS reports on cost control and progress help reassure the bank that the project is on track. Completion: A final valuation by a valuer confirms the project's value, which is important for finalising the loan. Checklist for Approaching the Bank To streamline the process and ensure you have everything in order when approaching the bank for financing, here is a full checklist of what to prepare: Detailed Financial Statements: Include balance sheets, income statements, and cash flow statements for the past three years. Credit History: Provide your credit report and any explanations for past credit issues. Project Plan: Detailed project plans, including scope, timelines, and objectives. Equity Documentation: Proof of equity sources (property, cash savings, investments, etc.). Designs and Consents: Complete architectural designs and necessary consents. Construction Contract: A contract with a reputable contractor, including clear milestones and contingency plans. Feasibility Studies: Comprehensive feasibility studies conducted by a Quantity Surveyor. Market Analysis: Providing a thorough market analysis showing demand for your commercial property can help convince the bank of the project's viability. Cash Flow Projections: Detailed cash flow projections showing how you plan to manage finances during and after construction. This includes rent income, operating costs, and loan repayments. Risk Management Plans: Demonstrating robust risk management strategies, such as insurance and contingency plans, can significantly enhance your application's credibility. Environmental Compliance: Documentation of eco-friendly practices and environmental compliance if applicable. Futureproofing Plans: Showcasing how your project is adaptable to future changes in market conditions or regulations can provide additional confidence to the bank. Professional Assessments: Independent assessments by QS and valuers. Securing finance for a commercial build project involves careful planning and thorough preparation. By understanding equity requirements, the bank's lending process, contract structure criteria, and the role of a QS and valuers, you can navigate this complex process more effectively. Additionally, considering often-overlooked factors can give you an edge in securing the necessary funding. At XL Structural, we’re committed to helping you grow to achieve your commercial property goals. By keeping these five key considerations in mind, you’ll be better equipped to secure the finance needed to bring your vision to life. For more detailed guidance and personalised advice, please contact us. You can book a call with one of our team here.

Extending your commercial building could be a decision you’re making to improve its functionality, safety or aesthetics. At XL Structural, we’ve done multiple extensions, but the question "do I need to bring the entire building up to code?" often comes up with our clients. This is a common concern among building owners and managers, and it's crucial to understand the implications of New Zealand's Building Code and local council regulations to navigate your extension smoothly. This article will look at the considerations surrounding compliance and provide insights to ensure your project progresses smoothly and successfully. Understanding the New Zealand Building Code The New Zealand Building Code (NZBC) sets out performance standards that all new building work must meet. It ensures buildings are safe, healthy, and durable. The NZBC is divided into two main sections: the mandatory provisions and the acceptable solutions and verification methods. These cover everything from structural stability and fire safety to accessibility and energy efficiency. When you're renovating, the key principle to understand is that any new work must comply with the current NZBC. However, this doesn't mean you must upgrade the entire existing building. The extent to which you need to comply with the NZBC depends on the scope of your renovation project. Compliance with NZBC During Renovation There are several scenarios to consider when deciding whether you need to bring the entire building up to code: Minor extensions and maintenance If your extension involves minor repairs or maintenance, such as painting, replacing fixtures, or patching walls, you typically won't need to upgrade the entire building. These minor works are generally exempt from needing a building consent under Schedule 1 of the Building Act 2004. However, any new construction or installation must still meet current NZBC standards. Alterations When you're making more significant alterations, the requirements become more stringent. According to Section 112 of the Building Act, if you're altering a building, you must ensure that: The building, as altered, complies with the NZBC provisions relating to means of escape from fire and access and facilities for people with disabilities. The building, as altered, continues to comply with the other provisions of the NZBC to at least the same extent as before the alteration. Change of Use If your extension involves changing the use of the building, the requirements are even more comprehensive. A change of use could mean converting an industrial space into a commercial office or vice versa. Under Section 115 of the Building Act, you must ensure the entire building complies with the relevant provisions of the NZBC for its new use. This includes structural performance, fire safety, access, and facilities for people with disabilities. Local Council Regulations In addition to the NZBC, local council regulations also play a crucial role in your renovation project. Each city council in New Zealand can have specific bylaws and district plans that might affect your extension. For instance: Different Councils will have different requirements: These regulations can impact various aspects of your project, including zoning, heritage considerations, and specific environmental standards. Resource Consents: In some cases, you might need resource consent in addition to a building consent, especially if your renovation impacts the environment or involves significant changes to the building's footprint. It's essential to check with your local council early in the planning stages to understand these requirements and ensure your project aligns with both national and local regulations. You can find out more about the various councils' rules and regulations with our planning guides for industrial zones here. Balancing Compliance and Practicality The phrase "as nearly as is reasonably practicable" often comes up when discussing compliance with the NZBC during extensions. This means there's some flexibility based on practicality and cost. However, this doesn't mean you can ignore safety and essential performance standards. When deciding what is reasonably practical, consider: Risk to life: Safety features such as fire escapes, alarms, and structural integrity must always be prioritised. Technical feasibility: Sometimes, the physical constraints of the existing building make certain upgrades impractical. Cost: While cost alone isn't a justification for non-compliance, disproportionate costs relative to the benefits might be considered. Practical Steps for Compliance Conduct a thorough assessment: Before starting your renovation, carry out a detailed assessment of your building. This should include structural evaluations, fire safety assessments, and checks for accessibility and other compliance areas. Engage professionals: Work with architects, engineers, and building compliance experts to ensure your plans meet NZBC standards. At XL Structural, we guide you through the process, ensuring your renovation meets all necessary codes. Develop a compliance strategy: Create a strategy, or a GAP Analysis, that outlines how you'll address each compliance requirement. This might include phased upgrades or alternative solutions that provide equivalent performance. Consult with local authorities: Regularly communicate with your local council to ensure your plans are in line with their specific requirements and to avoid any surprises during the approval process. Document everything: Keep detailed records of all assessments, decisions, and communications. This documentation will be crucial if there's ever a question about compliance. Extending a commercial building can be a significant undertaking, but understanding the requirements of the Building Code and local council regulations can help you navigate the process more smoothly. While you may not need to bring the entire building up to code, any new work must comply with current standards, and certain situations, like a change of use, may require more comprehensive upgrades. By conducting thorough assessments, engaging the right professionals, and developing a clear compliance strategy, you can ensure your extension not only meets regulatory requirements but also enhances the safety, functionality, and value of your building. Remember, each project is unique, and it's crucial to seek tailored advice for your specific situation. XL Structural may be able to assist you with your extension project. If we're not the right fit, we'll gladly refer you to someone who can best meet your needs. Book a meeting with our team to explore your options.

New Zealand’s construction industry has suffered high rates of business failure and liquidation recently, with businesses of all sizes, operating across all sectors of the industry, being affected over the last few years. People looking to build can be excused for proceeding with caution – the prospect of building in today’s climate can be daunting. However, understanding and recognizing the factors behind these business failures and taking proactive steps to work with a stable construction business can help you protect your investment and have a smooth construction experience. In this article, we’ll explore why there are such high failure rates in construction businesses, especially in the current financial climate, and what to look out for to ensure your next building project does not fall victim to one of them. Why do construction businesses fail? Underpricing and cost blowouts due to small project margins The cheapest quote isn’t always the one you should go ahead with. The industry is notorious for its low profit margins. This lack of financial flexibility, combined with often tight project timelines, puts an enormous strain on companies, making them extremely vulnerable to unforeseen project issues. Contractors often come unstuck when they can’t accurately price risk or incorporate a sufficient, sustainable profit margin into their projects. In extreme cases, they might submit very low bids intended to secure the work, but then try to increase margins to acceptable levels through variations or by pressuring subcontractors, which can compromise quality. When a project runs over budget, the financial strain can quickly become unmanageable. This can lead to delays, disputes, and companies going out of business. Contractors who underprice projects often hope to make up for the low bid through variations and additional work, but this strategy is fraught with risk and increasingly untenable in a competitive market. Warranty claims If a construction company is not diligent in its work, defects and faults can arise after the project is completed. Addressing these issues can be costly and time-consuming, eating into the company's profits and cash reserves. Issues always come up from time to time, so you want a company that is in it for the long term. If not priced properly, there will be less goodwill to come back and fix what they are legally obliged to. Choosing a company committed to long-term relationships ensures they will address any warranty claims with care and responsibility. Impact of inflation, market fluctuations, and fixed price contracts The construction sector is highly susceptible to inflation and market fluctuations. During periods of high inflation, the cost of raw materials and labor can increase dramatically, but these costs cannot be passed on to the client if the contract is fixed. This mismatch can quickly erode profit margins. Fixed price contracts are a double-edged sword. They provide you as the client with certainty but place contractors at significant risk. However, risk for them can mean risk for you. Fixed price contracts mean that while the cost of labor and materials continues to rise during a construction boom, the agreed-upon price remains the same. This creates a significant financial burden on contractors, who bear the brunt of it. This tension can lead to disputes, project delays, and financial losses for construction companies. In the current inflationary environment, you should be aware that a 'fixed price' doesn't mean there isn't conditions in the small print that allow for extra costs to be passed on. There can be significant clauses added around what are provisional sums, price escalations, or exclusions, there may still be cost blowouts and opportunities for variations to be charged. Both parties need to understand what the risks are and what the contractor is doing to try and mitigate them. Because it’s tricky to predict how much a build will cost, these contracts can put your entire project budget at risk. Growing too quickly It’s important to be cautious of construction companies that are growing too quickly. Rapid growth can be as dangerous as stagnation. When a business takes on more projects than it can handle, it becomes overextended, increasing the risk of going under. Problems often arise when a company tries to grow too fast without having the necessary resources, manpower, and ability to manage that growth. Expanding into new geographic areas or taking on larger projects without proper planning can lead to logistical challenges, quality issues, and financial strain. A company that grows incrementally and methodically is more likely to have tested and proven processes in place, ensuring a more sustainable approach to business expansion. What should you look out for before employing a construction company? To safeguard your building project, you need to be vigilant and proactive. Here are six things you can do before signing on the dotted line with a construction company for your next project. Do your due diligence Look into the company’s past customer feedback to gauge their reliability and quality of work. Investigating their relationships with suppliers and subcontractors can provide insights into their operational stability and reliability. Researching the company’s history and the profiles of its directors can help you understand their track record. Look for any patterns of financial instability or legal disputes, as these can be red flags. Considerations on liquidity issues and cash flow management Understanding the company's financial health is critical. Investigate their liquidity and cash flow management practices. Large deposits upfront and unrealistic timeframes can be a red flag. It's important to understand the payment terms and that payments are staged to tie in with project milestones. This will ensure the contractor remains financially stable and incentivised to complete the work on time. You could also ask subcontractors and other suppliers if they’re paid on time by this business. Delayed payments can indicate cash flow problems and can lead to delays in your project as well. Significance of having in-house teams vs. reliance on subcontractors Companies with in-house teams offer greater control over quality and timelines. This can mean more predictable costs and outcomes, as the company directly manages its workforce. You can benefit from a streamlined communication process, reducing the chances of delays. In-house teams are particularly beneficial for projects requiring consistent quality and specialised skills. There can be the efficiencies of repetition where in-house staff are very efficient and skilled in particular fields. Companies with more done in house – or vertically integrated, can often bring cost efficiencies as there is less ‘margin on margin’. But there is an overhead competent to manage this inhouse works Firms that rely heavily on subcontractors may be able to offer more competitive pricing due to lower overhead costs. However, this can introduce variability in work quality and potential coordination challenges. Heavy reliance on subcontractors can result in less accountability and higher risks of project delays. The financial risk here lies in the potential for unforeseen expenses if subcontractors do not meet the project standards or timelines. Generally, if a company has some core competencies in-house which allow them to bring value, they may bring in contractors for specialized areas or more local contractors. Evaluating their capacity Research and careful planning are crucial when entering new markets or types of construction to ensure the company is not overextending itself. Rapid company growth can sometimes indicate that processes have not been tested and proven. Carefully evaluate a company’s capacity before committing to a project. Look for signs that they are expanding methodically and have the necessary infrastructure in place to support their growth. Incremental growth, rather than a sudden leap from small projects to multimillion-dollar ventures, shows a more sustainable approach. Review contracts thoroughly Contracts are the backbone of any construction project. Ensure that they are clear, comprehensive, and legally binding. Seek legal advice to review contracts to ensure your interests are protected. Clear contractual terms help prevent misunderstandings and disputes during the project, providing a safeguard against potential conflicts. Understand how contracts can be administered. Have someone on your side who understands construction on bigger projects to ensure your interests are protected and to help navigate any complexities. Industry context and financial stability Consider the broader industry context and the company's financial stability. Mispricing and inadequate contingency planning can lead to significant challenges. Be cautious of so called ‘fully fixed price' contracts, especially during market downturns and inflationary periods. Look for a company or contract structure that shows where the budget risks lie, and how these will be mitigated as early as possible in the project – rather than just being a variation at the end. Come to an agreement with the contractor so that they are not passing all the risk of blowouts onto you – but are also not overextending and putting themselves at risk. By understanding these factors and taking proactive steps to assess and select your construction company, you can significantly reduce the risks associated with your building project. Careful planning, thorough research, and a cautious approach can help ensure a successful and smooth construction experience.

Building a successful business starts with a solid foundation, but what if the commercial property you lease turns out to be a financial drain or limits your operational efficiency? Selecting the right commercial property to lease is crucial and can significantly influence everything from your daily operations to your bottom line. This article will address the common concerns and questions business owners have when leasing a commercial property, guiding you towards a decision that not only supports your business goals but also mitigates potential risks. Evaluate the commercial buildings' suitability for your business When evaluating the suitability of a building for lease, consider its condition, location, lease terms, and any required renovations or modifications. Assess the commercial building's structural integrity, age, and maintenance history to avoid unforeseen expenses. Location is key; ensure the property is strategically placed for your business operations, considering proximity to suppliers, customers, and transportation links. Look over the lease terms, including duration, rent escalation clauses, and termination conditions, to ensure they align with your business plans. Factor in the cost and feasibility of necessary renovations or modifications to tailor the space to your operational needs. Is leasing right for you and your business? Read our article on owning vs renting here. Key considerations when evaluating the commercial Buildings suitability Structural integrity: evaluate the building's foundation, roof, and load-bearing walls or columns. Look for signs of damage or deterioration, such as cracks or leaks. It is also important to look for any structural damage. If steel columns or rafters look bent or misshapen it can be a sign of structural issues. Building systems: check the condition and capacity of essential systems like HVAC, electrical, and plumbing. Ensure they meet your operational requirements and comply with local council codes. Location analysis: use geographic information systems (GIS) to analyse the location for logistical advantages, such as access to transportation networks and proximity to key markets or suppliers. Consider finding a landlord to build for you to lease Engaging a landlord to build a property according to your specifications offers a blend of customisation and convenience. This approach allows you to design a space that perfectly suits your business requirements without the hassle of managing construction. However, it also involves negotiating terms that are favourable to both parties. Consider the lease duration, ensuring it aligns with your business plans and provides stability. Additionally, ensure that the landlord's vision aligns with your business needs to avoid any future conflicts. You’ll need to thoroughly vet the landlord’s reliability and financial stability. If you’re a developer or landlord, find out what can elevate the tenant appeal of your properties. Key considerations when engaging with a landlord Build-to-suit lease: this type of lease agreement involves the landlord constructing a commercial building to your specifications, with a lease agreement that typically spans 10+ years. Negotiation terms: be clear about who bears the construction risks, such as cost overruns and delays. Specify penalties for delays and bonuses for early completion. Review the lease renewals Understanding lease renewal clauses and negotiation strategies is crucial for long-term planning. It’s a good idea to get legal advice when reviewing this. Look over the renewal terms to understand your rights and obligations. Assessing market conditions before the renewal period can provide leverage in renegotiating favourable terms. Consider factors such as rent increases, lease length, and any changes in property maintenance responsibilities. It's also wise to have a contingency plan for potential relocation if renewal terms are unfavourable. Proactive negotiation and planning can secure a stable and cost-effective lease arrangement. Key considerations when reviewing lease renewal Market rent reviews: many leases include clauses for market rent reviews at renewal. Understand how these reviews are done and what comparables will be used. Options to renew: secure options to renew the lease at pre-agreed terms to avoid unfavourable market conditions at the end of your lease term. Align the commercial building with your business needs Ensure the commercial property follows zoning regulations and is suitable for your business activities. Evaluate its proximity to suppliers and customers to optimise logistics. Access to transportation, including major roads, railways, and ports, is vital for seamless operations. Consider the space layout and whether it can accommodate your equipment, storage, and workflow efficiently. A commercial property that fits your business needs now, and in the future, can enhance productivity and reduce operational costs. Key considerations to align a commercial property to your needs Zoning regulations: confirm that the property is zoned for your type of business. Industrial zoning may vary widely, impacting what activities are permissible. Space layout: conduct a space use study to improve workflow and storage needs. Consider future growth when evaluating your space needs. Transport links: evaluate access to highways, ports, railways, and airports. Consider the impact of traffic patterns and potential congestion on your operations. Identify common issues and advantages Common pitfalls can include unexpected costs such as maintenance and repairs, which can put strain on your budget. Understanding maintenance responsibilities, including who handles repairs and the associated costs, is crucial. Tax implications, such as property taxes and potential tax benefits, should also be considered, and you should run the numbers with your accountant. Conversely, leasing offers advantages like lower initial costs compared to buying, flexibility in location, and the potential for business expansion without significant capital investment. Weigh these factors to make an informed decision. Key considerations to identify issues and advantages Unexpected costs: clarify who handles major repairs and maintenance. Lease agreements may vary, with some costs passed on to tenants. Maintenance responsibilities: understand whether you are responsible for routine maintenance, and if so, ensure your budget is set accordingly. Tax implications: consult with a tax advisor to understand how lease payments, property taxes, and possible tax deductions impact on your finances. For more information on how to maintain a well-functioning commercial property, download our commercial building maintenance guide today. Is THE commercial building compliant? Regulatory compliance is a non-negotiable aspect of leasing commercial properties. Ensure the property meets all local council requirements and adheres to building codes. This includes fire safety, accessibility standards, and health regulations. Environmental and sustainability practices are increasingly important, with many businesses seeking properties with eco-friendly features. Verify that the property complies with these standards to avoid legal issues, insurance not covering a loss due to regulations not being met, and potential fines. Engaging with legal and compliance experts can ensure that all regulatory requirements are met, safeguarding your business operations. Key considerations to ensure the commercial building is compliant Building code compliance: ensure the building complies with the New Zealand building code, covering aspects like fire safety, structural stability, and sanitation. Resource consents: check if any resource consents are needed for your intended use and if they are in place. Environmental standards: consider environmental compliance, such as hazardous substances management, waste disposal, and emissions standards. Anticipating future needs and growth When selecting a commercial industrial property, it's vital to anticipate future needs and growth opportunities. Consider the scalability of the property; can it accommodate business expansion if needed? Flexibility in lease agreements is also crucial. Look for clauses that allow for lease extensions or modifications based on your business growth. Additionally, consider the potential for property appreciation, which can enhance the value of your lease over time. Planning for future growth ensures that your property remains an asset to your business rather than a constraint. Key considerations for growth Scalability: evaluate the potential for expanding your operations within the property or adjacent properties. Multi-tenancy buildings might offer options for expansion. Flexibility in lease agreements: look for options like first refusal rights on adjacent spaces, subleasing rights, and the ability to modify the space as needed. Property appreciation: consider the economic outlook of the area and the potential for property value appreciation, which can indirectly benefit your business. Conclusion Leasing commercial property involves careful consideration of several factors to ensure it aligns with your business goals. From evaluating the suitability of existing buildings to understanding lease renewals, aligning the property with your business needs, identifying pitfalls and advantages, ensuring regulatory compliance, and predicting future growth, each step requires thorough analysis and planning. By carefully evaluating these considerations, you can make a well-informed decision that supports your business's success and growth. Remember, the right property can significantly impact your operational efficiency and financial health. So, take the time to assess each factor, and don't hesitate to seek professional advice to navigate the complexities of leasing commercial industrial property. Contact us today to speak with one of our experts and get personalised guidance tailored to your business needs. For more information on leasing a commercial building, read our article on owning vs renting or for more on how to maintain a commercial property, download our commercial building maintenance checklist.

As a business owner, you recognise that your employees are your most valuable asset. But did you know that the design of your workplace can significantly influence their well-being, engagement, and productivity? By embracing holistic and people-centric design principles, you can create a workspace that supports your employees' physical and mental health, leading to many benefits for your business. In this article, we look at how you can achieve this through different interior design elements. Historical Context and the Shift to people-centric Design Traditionally, office design has focused on productivity and functional requirements, often neglecting the needs of the whole person. However, as we move towards a more holistic understanding of well-being, there is a growing recognition that a well-designed workplace can enhance employee satisfaction, health, and performance. This shift from space-centric to people-centric design prioritises the quality of life for employees, leading to better business outcomes. The impact of well-being on engagement and productivity Creating a state of enduring well-being for your employees can lead to more engaged, balanced, and productive individuals. With millennials blending work and personal life more than previous generations, it’s crucial to address broader employee needs within the workplace. Investing in well-being not only attracts and retains talent but also reduces absenteeism, stress, and healthcare costs. Let’s break down the key design elements that can make this a reality. Design strategies to promote well-being User control: empowering employees through flexibility Giving employees control over their workspace is fundamental to promoting well-being. This can be achieved through: Flexible task lighting: allow employees to adjust lighting according to their tasks and preferences. Task lamps and dimmable overhead lights can help reduce eye strain and enhance focus. Adjustable furnishings: offer height-adjustable desks and chairs to accommodate different body types and work styles. This flexibility can prevent discomfort and long-term health issues. Varied interaction spaces: create a variety of spaces for different activities, such as quiet zones for focused work, collaborative areas for team projects, and informal lounges for relaxation. This variety caters to diverse work styles and needs. Natural elements: bringing the outdoors inside Incorporating natural elements into your office design can significantly enhance the physical and mental well-being of your employees. Consider the following: Plants: indoor plants can improve air quality, reduce stress, and increase productivity. Choose low-maintenance varieties that thrive in indoor environments. Views of the outside: if possible, arrange workspaces to have views of the outdoors. Natural scenery can boost mood and reduce feelings of fatigue. Natural materials and patterns: use materials like wood, stone, and natural fibres in your office decor. Patterns inspired by nature, such as leaf motifs, can also create a calming atmosphere. Natural light: harnessing the power of sunlight Natural light is a critical factor in workplace design. It not only enhances the aesthetic appeal of your office but also has profound effects on employee well-being: Ample natural light: maximize the use of windows and skylights to bring in as much natural light as possible. Position workstations near these light sources to benefit from their positive effects. Circadian lighting systems: implement lighting systems that mimic the natural progression of daylight. These systems can help regulate employees’ sleep-wake cycles, improving their overall health and alertness. Minimize screen glare: arrange workstations to avoid direct glare on computer screens, which can cause eye strain and discomfort. Noise management: creating a balanced acoustic environment Managing noise levels in the workplace is essential for maintaining concentration and reducing stress. Here are some strategies: Distinct quiet and collaborative spaces: designate separate areas for quiet work and collaborative activities. Use sound-absorbing materials and acoustic panels to minimize noise transfer between these zones. Reduce noise distractions: implement measures like carpets, ceiling tiles, and white noise machines to dampen ambient noise. Encourage a culture of consideration on noise levels. Educate employees: provide guidelines on supporting a conducive acoustic environment, such as using headphones for personal audio and keeping conversations at a reasonable volume. Physical health: encouraging movement and ergonomics Promoting physical health through office design can lead to more energetic and less stressed employees. Consider these elements: Adjustable workstations: offer sit-stand desks and encourage people to change positions throughout the day. This helps prevent the negative effects of prolonged sitting. Walking routes: design the office layout to include walking paths or enough space between teams or desks to encourage employees to move around. Place amenities like printers and break rooms at a distance to promote walking. Ergonomic principles: ensure that all furniture and equipment adhere to ergonomic standards. Provide ergonomic chairs, keyboards, and monitor stands to support proper posture and reduce strain. Community building: fostering social connections Creating a sense of community within your workplace can reduce feelings of loneliness and enhance employee engagement. Here are some ideas: Social spaces: develop areas where employees can gather and interact, such as break rooms, lounges, and game rooms. These spaces encourage informal interactions and team bonding. Agile working environments: implement flexible workspaces that support different working styles and team collaborations. This flexibility can enhance communication and teamwork. Lunchrooms and communal areas: invest in well-designed lunchrooms that encourage employees to take breaks and socialise. Consider different personality needs, offering spaces for both social interactions and quiet reflection. Health and economic benefits Investing in employee well-being through thoughtful workplace design yields significant health and economic benefits: Reduced sick leave and stress: A supportive work environment can lower stress levels and reduce the amount of sick leave people take, saving your business money in lost productivity. Lower health costs: by promoting physical and mental health, you can decrease the prevalence of chronic diseases and reduce healthcare costs for your company. Improved morale and engagement: A well-designed workplace boosts morale, leading to higher levels of employee engagement and productivity. Attracting top employees and encouraging in-office interaction In today's competitive job market, a well-designed office can be a key factor in attracting top talent. Potential employees are increasingly looking for workplaces that offer a supportive and engaging environment. By creating spaces that promote well-being, flexibility, and community, you can position your company as an employer of choice. Additionally, having thoughtfully designed office spaces encourages employees to come to work, fostering collaboration and team spirit, which is often lost in remote work settings. What XL can offer At XL, we understand the importance of a well-designed workplace in enhancing employee well-being and engagement. Our full office design process is tailored to meet the specific needs of your business and employees. From creating flexible workspaces and incorporating natural elements to optimizing lighting and acoustics, we ensure that every aspect of your office supports the health and productivity of your team. With our team of experts, we manage the entire interior fit-out design process, ensuring that your space is transformed into an environment that delivers the best business outcomes. Trust us to help you create an office where your employees can truly thrive. Contact us today to discuss your office design project. The bottom line By embracing a holistic and people-centric approach to interior design, you can create a workplace that not only looks good but also supports the well-being and engagement of your employees. From giving them control over their environment to incorporating natural elements and promoting physical health, these design strategies can transform your office into a space where employees thrive. Your office space is more than just a physical location where work happens. It’s a vital part of your business strategy, influencing everything from employee satisfaction to the overall productivity of your team. By prioritising interior design and investing in your employees’ well-being, you’re setting the stage for a more successful and sustainable business future. To discuss your next project, contact our team of experts today and we'd be happy to walk you through the interior design process. Alternatively, download our XL System Brochure to understand the XL difference and how we can help you design and build the perfect commercial building.

Have you seen the new legislation released by the government? Are you considering buying, selling, or building a commercial building? Understanding the current market value helps you decide if it is worth starting a commercial building project. It also allows you to calculate the estimated margin or capital gain between the construction cost and the potential sale price. In this article, we outline the various drivers of the commercial property market and explore the role of CAP rates and rental rates. We also explore how the government’s policy on depreciation has impacted building tax over the past several years. Please note that the below information is generalised - please seek the advice of a suitably qualified professional to give advice relevant to your circumstances and the current regulations. Building Depreciation NZ In recent years, New Zealand has seen major policy changes surrounding commercial building depreciation. From 2012 to 2020, the depreciation rate for most buildings was set at 0%. However, on the  25th of March 2020, depreciation was reintroduced for non-residential buildings with a 2% diminishing value or 1.5% straight line. This meant building owners could claim depreciation on their commercial buildings and receive an adjusted tax value, reducing the tax they needed to pay. In April 2024, most commercial building depreciation was changed back to 0%, affecting all non-residential buildings with an estimated useful life of 50 years or more. Technically, buildings are still considered depreciable property but the annual depreciation rate is set at 0%. This ensures properties are still subject to certain depreciation rules, such as depreciation recovery income if a building is sold for more than tax book value. If the building you own has an estimated useful life of less than 50 years according to IR265 General Depreciation Rates, you can claim depreciation deductions as you did before. How to claim depreciation If you own a non-residential building, you can claim depreciation deductions using one of two methods — the straight-line (SL) method or diminishing value (DV) method. The Diminishing value method (DV) is calculated annually, using a constant percentage of the asset's adjusted tax value. This means your depreciation deduction will progressively reduce each year. In the Straight Line method (SL), the asset’s value depreciates each year by the same amount, based on a set percentage of its original cost price. Once you've decided on the method, you’ll have to identify the correct depreciation rate depending on the date you acquired the asset. For all depreciable assets acquired after 1 April 1993, you can use the IRD depreciation rate finder or find the rate here, via the relevant industry and asset. However, when the rate is 0%, there will be no deduction available. What drives the commercial property market? Commercial property is an investor-driven market, which means almost all properties are owned by investors. Generally, even owner-occupied properties are owned as an 'investment’ that is leased back to the owners or the business. This is in contrast to the residential property market, where there is a large owner-occupied market and many more emotional factors at play. What is a CAP rate? The dominant factor in the commercial market is the rate of return, commonly known as the Capitalisation rate or CAP rate. This is the total rental value, as a percentage of the property's value. For example, if you have a $1,000,000 property and the rent is $60,000p/a, this is a 6% CAP rate. If you reverse this, it can be used to calculate the value of a property. For example, if you pay $100,000 in rent per annum, the property investors would look for a 6% CAP rate. This means they would be willing to pay $100,000 / 6% = $1,666,667. The question is — if you have not built or bought a building, what is a realistic rental rate or CAP rate? What is an expected CAP rate? Investors in main centres are typically looking for a 5-7% CAP rate. In the regions, this can be higher, with some investors looking for a 10% CAP rate before starting a custom build. If you're looking to sell or build and sell to an investor, an attractive property with a lower CAP rate allows you to sell for more with a market lease rate. So what impacts the CAP rate? Quality of the tenant Banks and investors want to know how strongly the tenant will occupy the building. Generally, national chains are regarded as strong tenants because they don't move around much and are often on longer leases of 10+ years. They are also regarded as more financially stable when compared to a smaller business which may not have an established nationwide trading history. However, that is not to say that a local business would be discounted if they are clearly a well-established and stable entity. Length of the lease Longer leases are more attractive to investors so are more likely to accept a lower CAP rate. For example, a 10-year term may tempt an investor to accept a lower CAP rate as they will have stable returns. On the other hand, a 3-year lease may not be as appealing, as they run more risk of having an untenanted property. The prospect of rent increases If a property is leased below market rate, a savvy investor may be happy with a lower CAP rate as they can see the ability to increase lease rates. For example, they might be able to increase the rates for the existing tenant or find a higher-paying tenant to increase their return. What is a rental rate? Most businesses look at rental costs on a cost per m2 basis, generally broken into rates for warehouses, canopy offices, and yard areas. The rate varies, depending on location and the building spec. For example, high-bay warehousing commands a higher rental value than a low-stud workshop and a higher-spec office would command higher rates than a simple one. Local real estate agents are generally well acquainted with rental rates and local nuances. For example, a certain type of warehouse or office may be scarce in an area, commanding a higher premium. On the other hand, another building design might have expensive features that are not valued by the local market, which may prove to be a poor investment. Colliers regularly provide averages for rates on their website, as shown in the below snippet. Source: Colliers What impacts commercial property value? If you are buying or selling an existing older building, the cost of any remediation work to get it tenanted will be a factor. For example: Is there significant deferred maintenance to be done (e.g. a re-roof or refurbishment of the offices)? Does the building need to be strengthened to bring it up to new building standards? What is the title structure, is it leasehold or freehold? Are there further development opportunities? Does the building comply with health and safety standards? If you are doing a new build or ‘spec build’, certain features (like workshop heating) may command a more favourable lease. For example, increasing the height of a larger warehouse may not cost exponentially more but can increase the rent value. If you wish to discuss your project with our team, please don’t hesitate to contact us directly. We would love to explore your options and advise your best next steps.

Is your commercial building designed for energy efficiency? Is your workshop difficult to heat and cool? Commercial and industrial buildings can be extremely difficult to heat, particularly with high ceilings and frequently opening doors. Over time, energy consumption and costs can quickly add up, leading many businesses to look for energy efficient solutions. Fortunately, there is an extensive range of energy efficient solutions to use when building your workshop. In this article, we explore the various considerations you should make, including: Building layout Insulation Heating Ventilation Loading bays Sustainable design So, what's the most energy-efficient building design? Workshop layouts The layout of your commercial building will impact how easy it is to heat and cool. For many workshop buildings and commercial properties, multiple operations take place simultaneously. To ensure each area is easy to heat as required, it may be worth separating them with an insulating curtain, partition, or wall. Popular layout features include workbenches, tool storage, shelving, windows, ventilation, utilities, heating, safety features, and separate offices. This allows flexibility to use and heat each space as required, reducing energy use and costs. For example, you can section off a packing area so it can be heated without wasting heat on the whole warehouse. Insulation for commercial buildings Insulation enhances energy efficiency and helps maintain a comfortable temperature in your commercial building. In turn, this reduces heating costs and energy consumption. The main insulation options for commercial buildings include pink batts, roof blankets, PIR/EPS panels, and insulation laid between 2 layers of roof cladding (roof logic). The pink batts method involves filling the building cavity with pink batts and covering it with an internal lining of plywood or GIB. This is usually applied in offices and buildings with a low stud height. The underlay roof blanket method involves laying a thick thermal material between the cladding instead of building paper, increasing the R-value. This is fast to install and serves as insulation, a vapour barrier, and a radiant barrier. PIR/EPS panels are structurally insulated panels made up of two sheets of COLORSTEEL® with EPS polystyrene or PIR bonded in between. The cost is often less than lining and using batts, especially when larger R-values are required. This means the exterior cladding, insulation, and internal lining are all in one, with a variety of panel thickness options. Finally, you can add insulation between two layers of roofing. This includes laying a ‘liner deck’ of roofing down on the purlins, an insulation layer, and a final roof layer on top. This makes it easy to achieve a similar insulation value to PIR panels and you can also add acoustic board layers to absorb excess noise. From a compliance standpoint, you may not always need to insulate the roof and walls. However, incorporating insulation from the beginning of your project will maximise energy efficiency and allow you to maintain comfortable internal temperatures without excessive energy consumption. For more advice, read our full article on commercial insulation options. How to heat a commercial building By managing the temperature inside your workshop, you can improve morale, productivity, and health and safety outcomes. Several heating options are available, including hydronic underfloor heating, infrared heaters, and radiators. Hydronic underfloor heating systems circulate warm water through pipework enclosed in the concrete floor. This offers several advantages, including ground-up heating that ensures tools and surfaces remain warm and consistent heat distribution throughout the workspace. It is also highly efficient and operates silently without obstructing work areas. Infrared heaters emit radiant heat, providing rapid warmth to your staff without heating the surrounding air. You can also heat zones within workshops, reducing energy consumption. Radiators are heated with hot water and can be adjusted per room. This makes them suitable for spaces with varying heating needs. However, they don’t offer any air exchange and can result in heat loss in the boiler house and from the pipes to the radiator. Ventilation and air conditioning According to the NZ Building Code H1 standards, you are required to provide evidence of the efficiency of systems such as air conditioning, mechanical ventilation, fans, pumps, chillers, etc, as well as the insulation of pipework, and ductwork. Loading bays and transitional areas A sheltered loading bay, awning, or transitional wall partition provides a dry, protected space to move vehicles or stock in and out of your warehouse. This can also make it easier to manage the internal temperature of your workshop and keep your team dry. If your operations require the door to be open, this can make a dramatic difference. Sustainable workspaces By incorporating sustainable design features, you ensure your commercial building is environmentally friendly and appealing to tenants or future buyers. Features we recommend considering include: Skylights Large windows Open-plan concepts Solar panels Electric vehicle chargers Water recycling facilities. We also recommend incorporating green spaces and indoor plants to improve air quality, boost employee morale, and foster a sense of well-being. Commercial buildings NZ If you’re planning to build a new office, warehouse, or workshop, the XL team is here to help. We’ll work closely with your team to optimise your project, sharing our experience and expertise to design an efficient building for your needs. We’ll also provide helpful information to ensure your commercial property maintenance is energy efficient and affordable. Book a meeting to chat with one of our industry experts and explore the best solutions for your operations. Alternatively, use our Budget Estimator tool or download the following resources for everything you need to know. Guide to Selecting Commercial Land Warehousing and Distribution Brochure Workshops and Maintenance Brochure The XL System Brochure

Your essential guide to effective commercial property maintenance in New Zealand Safeguarding the value of your commercial property demands a proactive approach to maintaining it. Commercial property maintenance is all about keeping buildings in good condition. It involves regular inspections, repairs, cleaning, and updates to the building’s structure, systems, and surroundings. By doing this you’ll enhance tenant satisfaction, ensure safety, and maximise its value. But where do you start, and what are the most essential commercial property maintenance tasks you should prioritise? In this article, we will discuss how to make sure the building is safe, looks good, and works well for the people who use it. The importance of commercial property maintenance Here are six key reasons why it’s important to regularly upkeep and maintain your commercial building: 1. Happy tenants Regular maintenance on your building contributes to a safe, functional, and appealing environment, demonstrating your commitment to your tenants' comfort and well-being. This can also help attract and retain high-quality tenants more likely to renew their leases. 2. Maintains property value A well-maintained property is more likely to retain or even increase its value over time. Regular maintenance helps prevent small issues from turning into major problems that can be costly to fix and can detract from the property’s value. By keeping the building and its surroundings in good condition, you’re protecting your investment. 3. Good return on investment By maintaining the property in good condition, owners can minimise vacancies and attract more premium rental rates. Additionally, well-maintained properties tend to experience lower operating costs over time, which can translate to higher profits. 4. Saving money Fixing small issues at an early stage is a good way to save money, reducing the need for more extensive and expensive repairs later. For instance, repairing a small plumbing leak is much cheaper than replacing big parts of your property’s walls and floors because of water damage. Regular maintenance also makes your building parts last longer, so you won't have to replace them as often. 5. Keeping things safe Regular maintenance checks ensure that all systems, such as electrical, plumbing, and fire safety, are working properly. This not only protects the people who use the building but helps avoid legal issues and potential fines that can arise from neglecting safety standards. For more information on health and safety measures, read our blog on Health and Safety Considerations for New Commercial Buildings. 6. Maintaining a good brand image The upkeep of commercial properties can influence the reputation and brand image of businesses operating within them, particularly those welcoming customers or clients on-site. A well-maintained property reflects positively on the commitment of the business and creates a positive impression on visitors. What are the different types of commercial property maintenance? Depending on the type of business you operate, the size of the property, and the level of traffic, how often and how much you need to maintain your property will vary. There are three main types of commercial property maintenance: 1. Standard upkeep This includes weekly or bi-weekly tasks that may seem small in the larger scheme of building maintenance but go a long way in keeping a clean, safe, and presentable building. These are tasks like sweeping and mopping floors, dusting surfaces, and emptying trash cans. 2. Preventive maintenance More critically are the tasks done on a monthly or quarterly basis that prevent potential problems from arising? For example, inspecting the roof for leaks or water damage, regularly checking the HVAC system, and ensuring the building’s fire alarm system is in working order. 3. Repairs and replacements Over time, all buildings and equipment will eventually need repair or replacement. This could include anything from replacing a broken window to fixing a leaky tap. By staying on top of repairs, you can help keep your commercial property in good condition and reduce the amount of maintenance required in the future. Creating a commercial property maintenance plan Whatever the size of your commercial property, having a commercial property maintenance plan is important to help you keep things running smoothly. There are a few important things you should include in your commercial building maintenance plan. Inspect your property and focus on high-traffic areas Inspect the interior, exterior, and common areas of your property and assess the risks associated with it. Look for any signs of wear and tear, and make sure all systems function properly. Once you’ve identified and prioritised the risks, you can develop a thorough maintenance plan that addresses them. Establish a schedule Establish a regular maintenance schedule of cleaning and upkeep tasks that need to be done. This might include daily and weekly tasks. Depending on the size and type of commercial space you manage, there may be other tasks that need to be added to the schedule. Create a system Create a system for tracking and responding to maintenance issues as they arise. This might include having a designated person responsible for taking repair requests and scheduling the appropriate maintenance technician or property maintenance team to address the issue. Or, if you have an online system for submitting maintenance requests, you need to be sure that someone is regularly checking those submissions and acting as required. What to check iN YOUR COMMERCIAL PROPERTY To make sure every part of your property has been checked and covered, you can break maintenance down into these different categories: Exterior Regular inspections and upkeep, like checking the roof and repaving the parking lot, maintain the property's appearance and protect it from weather-related wear and tear. Interior Consistent cleaning and timely plumbing repairs maintain a comfortable and functional interior for everyone who uses the property. Security Keeping on top of the maintenance of surveillance cameras and alarm systems is important for your business, the property and staff. Safety Monitoring for falls, slips, trips or other hazards. Should I use a property management team – and if so, what should I look for in one? A property maintenance team can save you time, and ensure your property is well looked after, allowing you to focus on other areas of your business. Depending on the size of your property, you might instead look at outsourcing individual maintenance tasks to experts, for example, hiring a window washing team that comes in each month. When you’re looking for a property maintenance team, the following are a few things to keep in mind before making any decisions. Cost Look for competitive pricing without sacrificing quality. Get detailed quotes to compare. Equipment: Ensure they use modern, well-maintained equipment suitable for your property's needs to avoid damage. Protocols Check for established schedules, emergency plans, and clear communication channels to ensure consistent service quality. For more information on maintaining your commercial building or how to design a commercial office building with safety in mind, reach out to our team of experts today to discuss your project. Alternatively, download our Maintenace Checklist as your guide to maintaining a well-functioning commercial property - let it be a cornerstone of your commitment to quality maintenance.

Managing the health and safety of both your staff and customers within your new commercial build can feel like a complex task that involves screeds of red tape and cash – but with some upfront planning and the right people onboard, it doesn’t need to be. As everyone’s responsibility, Health and Safety is something that needs to be considered right at the conception stage of your new workplace build. In this article, we’ll look at how you can ensure that health and safety is prioritised. Health and Safety in the workplace The Pike River disaster led to changes in legislation, with the introduction of the Health and Safety at Work Act in 2015 (the Act). The Act introduced a risk management framework and established a workplace regulator, WorkSafe New Zealand, and the mandate to improve learning and development in New Zealand. Businesses all have responsibilities and obligations under the Act. They must ensure their workers and visitors are safe and healthy at work by managing the risks from the work. The Act has transformed the landscape of health and safety for business owners, moving it away from merely ticking boxes to fostering a ‘culture of care’ within their workplaces. The benefits of prioritising Health and Safety stretch further than keeping everyone safe too. Embracing a proactive approach can not only bring immediate advantages in terms of cost and time savings but also promotes a good reputation and ensures the long-term sustainability of both your business and its premises. Safety in Design: A proactive approach Health and Safety by Design means you're considering potential hazards before they become realities - integrating safety measures into the fabric of your business operations. It’s a proactive and forward-looking approach that guides every stage of your project, from the initial planning to eventual demolition or repurposing. When safety is considered during the design phase, potential dangers can be identified early and fixed – which is important, because as a project progresses, it becomes harder and more expensive to integrate these safety measures. It also helps keep the project on track and is a good way of ensuring your business is going to operate efficiently on the site. The challenge often arises when the safety of a building is just one aspect among a wider set of business and design objectives. As a business owner, you’re often also thinking about practicability, performance, aesthetics, cost and functionality. These sometimes-competing objectives need to be balanced in a way that doesn’t compromise the health and safety of those who use the building. Your designer will integrate safety measures into each of the design phases. These can usually be broken down into: Pre-design phase: Before designing begins, your designer can work with you to identify potential hazards. Conceptual design phase: Your designer can focus on identifying and mitigating the more specific safety risks. They can analyse various aspects of the design, such as site-specific factors and spatial planning, to enhance safety. Collaboration, research, and evaluation play key roles in laying the foundation for a safe building in this phase. Design development phase: Detailed drawings will help to visualise your building. Your designer can check that the building is up to council and regulatory health and safety compliance in this phase. Designers rely on the building code and industry standards to help ensure their design meets safety criteria, covering aspects like structural integrity, fire safety, and health amenities. Each business and build will however have its own operating systems, equipment and workflow requiring individual assessments. Lowering the impact of common risks While specific health and safety risks may vary depending on the nature of the industry, stats show that there are some common risks in industrial settings across New Zealand that business owners need to be vigilant with. These include slips and falls, machinery accidents, exposure to harmful chemicals, and fire hazards. When you look across these risks, many of them can be mitigated through regular site inspections and building maintenance. Maintenance is crucial for sustained safety at your workplace, with regular inspections and upkeep of machinery and infrastructure reducing the risk of higher repair costs and demands down the track. Consideration should be given to those who maintain the workspaces, building and surroundings. Making sure the building is designed so that facilities are easily accessible, inspectable, and maintainable is crucial for routine maintenance. Access provisions should prioritise safety and provide enough space for maintenance equipment, vehicles, and people carrying tools. In cases where there are maintenance challenges, like with rooftop air conditioning units, for example, it is important that there is consideration as to how it will be safely accessed. Safety features like guardrails, access platforms or static lines where harnesses can be connected can help keep people safe. Efficiency through safety planning Operational planning involves implementing practical solutions that not only mitigate risks but also enhance your operational efficiency. To highlight how this could work, one consideration is the separation of customer access from operational areas. By clearly marking these spaces, you minimise the potential for accidents and disruptions while optimising the flow of both foot traffic and business operations. Designing pathways that are free from hazards and obstructions ensures that employees and visitors can navigate the workspace with confidence and without the risk of slips, trips, or falls. Installing handrails and barriers on elevated platforms adds an extra layer of protection, reducing the likelihood of accidents and injuries in areas where there is a risk of falling or stumbling. Working within the law, what happens if I don’t comply? Employers can be given significant criminal penalties for breaching the health and safety laws: Breaching a duty: If an employer breaches a health and safety duty, but no one is exposed to any serious risk, they can be convicted and fined up to $100,000 if they’re an individual person and up to $500,000 if they’re a company. Creating a serious risk: If an employer breaches a health and safety duty and this exposes their workers or others to a risk of death, serious injury or serious illness, they can be fined up to $300,000 if they’re an individual and up to $1.5 million if they’re a company. Recklessly creating a serious risk: If an employer recklessly does something that exposes their workers or others to the risk of death, serious injury or serious illness, they may face a jail term. They can be jailed for up to five years or fined up to $600,000, or both if they’re an individual. If the employer is a company, they can be fined up to $3 million. To avoid falling outside the law, it’s a good idea to conduct regular risk assessments on your workplace. A risk assessment is a process used to identify risks and hazards in the workplace, and the potential impact of these risks on business operations. Here’s how you can do one: Identify hazards: Look out for risks from various sources like chemicals, physical conditions, ergonomic setups, psychological factors, and social elements. Pinpointing all potential risks in your workplace is vital for assessing, preventing, and managing them. Evaluate risks: Once you've spotted them, assess their potential impact or consequences. This helps you prioritise risks and devise a plan to deal with them effectively. Implement control measures: After identification and assessment, develop measures to minimise or eliminate risks. This might involve changing work procedures, providing training to employees, or supplying personal protective gear. Monitor risks and controls: Keep an eye on the implemented measures to ensure they're working effectively. See WorkSafe for more information on risk assessments Thinking about health and safety in your building and site design – and taking a proactive approach to it across every phase of your project can not only prevent health and safety incidents, but enhance your operational efficiency and protect your businesses reputation. It's important to recognise that prioritising health and safety doesn't have to involve a lot of bureaucracy; but employs practical measures that make everyone's jobs easier and contribute to long-term cost savings and improved workflow. For more information and helpful resources for planning your next commercial build, visit our resources page. Alternatively, if you’d like to discuss your project with one of our consultants, contact us today or book a time with a project consultant.

Are you looking to design and build a commercial building that will include racking systems as part of your business operations? This kind of build requires a well-considered approach. Integrating the racking design with the building design early in the process rather than as an afterthought and there being issues when you come to design and install it. Having worked with many clients who require racking, in this article, we look at what you need to consider when you’re designing a commercial workplace that will house racking systems - including maximising and optimising space, safety and regulatory compliance and building code requirements. Maximising your building – up or out? If you’re looking to get the most out of your space and fit as much racking into your building as possible, it can be a case of assessing whether to build upwards or, if your land allows, expanding your build out. If compatible with your machinery and inventory, increasing the building's height to accommodate a larger racking capacity can be a practical option - as it increases the storage capacity per square metre of the building, and boosts productivity by making retrieving products more efficient. However, this route tends to incur a higher build cost on a per square metre basis. Conversely, expanding the footprint of your build to capitalise on your site coverage may work out to be cheaper upfront, but not yield a comparable increase in pallet capacity when you compare it to building upwards. Both options of building up or building out have implications other than cost that could dictate the right solution for you: There is a common misunderstanding that if you build over 8.0m apex height you will have to have sprinklers. This is correct under the C/AS2 fire code, however under the other fire code - C/VM2 the requirements for sprinklers can often be mitigated by having an engineer do a specific design and issuing a PS1 - which is peer-reviewed by another engineer and checked by FENZ. It costs more like $30-50k compared to a C/AS2 report which is usually <$4k but the savings by not having sprinklers to install or maintain are considerable (six-figure numbers). For buildings that have over 5m racking height or an apex over 8m: These buildings need a VM2-engineered fire report to avoid the need for sprinklers. The larger-scale warehouses and industrial facilities falling into this category would typically use the Verified Method (C/VM2) for fire protection assessment. For buildings that have under 8m apex and less than 4200m2 footprint: These buildings typically only need a CAS2 fire report, which is a simpler process and doesn't require sprinklers. These smaller to medium-scale commercial and industrial buildings can utilise the Acceptable Solution method (C/AS2) for compliance with fire regulations. Aligning your building height with the right fire risk classification will reduce the expenses related to structural enhancements and fire protection systems. You can read more about fire protection regulations for your building here. Layout optimisation and workflow efficiency Many warehouses are active places with high rates of inventory turnover. A poorly designed warehouse can quickly become chaotic, inefficient and create safety hazards. By teaming up with experts in warehouse racking, like The Shelving Shop, along with your building designer, you can work with, and tap into their knowledge to come up with a layout that makes the best use of space, aisle widths, and shelving arrangements. Your designer can help you visualise layout designs and allow you to spot potential problems or inefficiencies early on through their plans. It's important to analyse factors like how easy it is to reach products, how quickly inventory moves, and the overall workflow to make sure the layout is just right for your needs. Consider how you want the traffic patterns in your warehouse to work. The best design will allow workers to work efficiently and avoid crossflow interference. If your warehouse involves the use of forklifts as well as workers on foot, make sure you plan for an aisle width and traffic flows that allow for this. You’ll also need to consider your product picking methods. Handpicking will allow for narrower aisles with products that are easier to reach, however, if you do use forklifts, ensure you know your forklift style, width, and turning radius. Measure your pallet width and consider safety clearance for manoeuvrability and load sway. One size doesn’t fit all when it comes to your racking layout, but many business owners have one thing in common; to optimise the space they have and fit in as much racking as they safely can. XL Structural recently worked with a client who was looking to do just this. Initially this business requested their racking run width ways – however, this design didn’t allow for the volume of racking they needed. By carrying out a second design with the racking that ran length wise of the building, they found they could increase the amount of racking by 27%. This increase was even after sections of the lower-level racking was removed to allow for better workflow efficiency and forklift movements. Incorporating consent and compliance Businesses need approval from their local Council to install racking in their building. It’s important to work concurrently with your racking company and building designer early in the process so that it can be integrated as part of the building and floor design. Getting building consent for your racking design involves submitting documents like racking layouts, structural drawings, and a producer statement to Council. Producer statements are crucial for showing compliance with building regulations. Depending on your build, additional reports like fire and emergency lighting may also be needed. This is where having a lead consultant to manage all the various requirements will take the pain and headaches out of your hands. Designing a commercial building with racking systems requires an approach that considers space optimisation, regulatory compliance & construction efficiencies. By addressing these considerations proactively and collaboratively with experts in the industry, you can create efficient and safe environments that set your building up for operational success. XL Structural are the experts in commercial and industrial buildings. If you’re in the early planning of a new warehouse, distribution facility, or commercial building XL can provide preliminary building concepts, initial racking layouts and lead the design conversation with racking specialists to integrate this into your building design. Guided by our philosophy You can book a meeting here to discuss your new build plans and to see how XL may be able to help achieve your new building goals in the best way and simplest way possible. XL would typically become the lead consultant on a warehouse building and would drive design conversations with you and racking specialists. This ensures it gives a considered approach to all aspects. If you’re looking to design and build a commercial building with racking systems reach out to the team at XL we can help drive the conversation.

Building a new property for your business to operate from is an exciting time, indicating growth, and new opportunities. There’s a lot to ponder when it comes to the design and cost of your office build, including whether to make your office single-level or two-storey. While a single storey saves costs and encourages workflow, a double level makes the most of your workshop’s ceiling height. Depending on your site and objectives, spending the extra money could be the right thing to do. Often, it’s assumed that adding an extra floor won’t cost much because the roofline is already double the height for the rest of the build. However, this isn’t always the case so there are several considerations to make an informed decision for your new build. In this article, we look at what to consider as part of your decision-making process before deciding on a single or double-level office for your new build. Considerations for designing an office It’s vital that your office space meets your business’s current requirements but also has the flexibility to grow along with your business. At XL Structural we have the in-house expertise to guide you through the design process, accounting for the following key considerations: Functionality Comfort Accessibility Safety Flexibility Sustainability Budget Check out our helpful blog articles for more design tips and office planning terminology. Base costs of the structure One of the contributing factors to the increased cost per square metre of a double-storey build is the extra structural requirements to support the mid-floor. From previous comparisons, the base costs of a mid-floor structure can often be $500 to $700 per square metre more than the floor structure of a single-level build. Fire Protection Fire protection requirements also need to be met to ensure adequate protection between floors. This may include a fire-rated floor structure, fire-rated linings and extra fire-egress stairs. This all adds to the cost of building two-level offices in comparison to single-level offices. Accessibility Compliance with accessibility standards often requires the installation of features such as multiple staircases, elevators, and ramps. These features are crucial for safety and inclusivity but will contribute to overall project expenses. Operational Costs Beyond construction, operational costs play a pivotal role in the long-term financial outlook of office spaces. For example, double-storey layouts often incur higher heating, ventilation, HVAC, and maintenance expenses. Double-storey spaces also require a second set of toilet facilities, kitchen facilities, or coffee stations. Additionally, maintenance tasks might require specialised equipment and access requirements for each floor. Understanding these operational costs is essential for forecasting ongoing expenses. Land availability vs build cost While double-storey designs have higher construction costs, they offer the potential to build up rather than out. This can be more cost effective when you are limited by the size of your block of land or the land prices outweigh the costs of building a double level. Space utilisation Single-storey office designs typically offer a more open and flexible layout, making it easier to change the space as your business changes and promoting efficient use of every corner of the office. On the other hand, double-storey offices typically result in building inefficiencies due to things like staircases, elevators and fire-protected lobby areas. However, once the proposed office size exceeds 400 to 500 square metres, we often see the benefits of double-level offices become more pronounced. At this size, the office area doesn’t lose as much space (as a percentage) for stairs, lobby spaces and extra facilities. They may also have the operational advantage of having lunchrooms and executive boardrooms separated from the main office area. With more than 400 to 500 square metres, double-level designs also maximise the utilisation of land. To determine the most suitable design for your office and minimise wasted space, you must carefully evaluate their spatial requirements and workflow. By maximising space utilisation, you can create a more efficient and productive work environment for your employees. Impact on workflow The office layout plays an important role in fostering collaboration, workflow, and employee interaction. In double-storey offices, teams dispersed across different levels may face challenges in communication and collaboration, potentially hindering business productivity. Equally, for some businesses, it may help productivity to have some teams working separately from others. Open-plan, single-storey designs promote a more cohesive working environment, facilitating communication and collaboration among staff. However, if the space is sprawling across a large footprint, this may be impacted. Business owners should weigh the importance of interpersonal dynamics and teamwork against the benefits of a multi-storey space. Visual appeal A double-storey building design commands attention and can significantly influence the visual appeal, street presence, and perceived prestige of your office, business and brand. This is particularly effective when potential customers or clients visit your site, or in industries where prestige and professionalism are paramount. However, single-storey designs offer simplicity and accessibility so the perceived prestige of the building should align with the business's brand identity and target audience preferences. Retrofitting When planning a new build for future growth and adaptability, businesses should consider the implications of retrofitting or expanding their office space in the future. Double-storey offices may offer limited flexibility for expansion, as additional levels could require significant structural modifications and compliance with building codes. Alternatively, single-storey designs provide greater flexibility, allowing for easier expansion through extensions or reconfigurations, depending on the site it sits on. Clients often consider building a single-level office within the workshop area, with the idea of building a second level directly above as the business grows. However, this could disrupt office operations and may be impractical. An alternative option is to build a single-level office in front of the warehouse. This allows for the potential construction of a smaller double-level office directly behind the initial office in the warehouse's first bay, avoiding the need to build above existing offices, utilising the existing building footprint, and presenting a cost-effective way to expand. Retrofitting considerations include the feasibility, costs, and disruption associated with modifying existing structures to accommodate evolving requirements. Businesses should assess their long-term needs and growth projections to determine the most cost-effective approach now and into the future. The best way to build an office block While building costs may typically be higher for double-level office construction, it's crucial to consider other aspects such as space utilisation, workflow impact, visual appeal, retrofitting possibilities, and long-term operational expenses. Each factor plays a significant role in deciding the most suitable design for your business's needs and objectives. For more advice on building an office block or mezzanine, read our full article about the best building methods for office layouts.

Are you considering installing a service pit in your workshop? From safety and logistical concerns, to cost implications - there are plenty of things to think about before you decide on the right kind of service pit for you and your workplace. In this article, we’ll go over the pros and cons of service pits as well as the key things you need to think about before equipping your workshop with one. Is a service pit right for me? Whether you are looking to install a service pit or decide whether a hoist will suffice instead, both options come with their own advantages and considerations, catering to different business needs and preferences. Service pits Pros of service pits Efficiency: Service pits offer a faster and more efficient workflow, allowing vehicles to drive in and out easily. Fail-safe operation: Service pits are considered more fail-safe than hoists, particularly when it comes to ensuring proper jack placement and safety. Lower maintenance: With fewer moving parts compared to hoists, service pits generally require less maintenance. Space optimization: Internal building height can be lower when using service pits, making them suitable for areas with height restrictions. Easy access: Pits provide easy access to wheels and tyres. Fitted out: Service pits can be fitted out with fluid lines and equipment, eliminating the need to drag equipment over the main floor, and making the workplace safer. Cons of service pits Long-term investment: Installing a service pit requires significant upfront costs and construction work. Groundwater management: Dealing with groundwater can be a challenge, however, proper tanking systems will prevent flooding and damage. Ventilation: Adequate ventilation is essential for safety and compliance, but it can be costly to install. Lighting requirements: Meeting lighting requirements, including lux levels and direction, is crucial for ensuring a well-lit and safe working environment. Stair compliance: Stairs leading into the pit must meet compliance standards, including non-slip surfaces and visual indicators for safety. Hoists/Lifts Pros of hoists and lifts Flexibility: Hoists offer flexibility in a workshop layout and can be moved to different locations or buildings as needed. Compliance: Hoists usually require less compliance than service pits, making them easier to set up and maintain. Adjustable height: Hoists can be adjusted to accommodate different technicians and vehicle sizes, offering versatility in their use. Cons of hoists and lifts Installation costs: While hoists may seem more cost-effective initially, installation costs can add up, especially for high-quality systems. Compliance concerns: Hoists still require compliance with safety standards, including electrical, ventilation, and lighting requirements. Space limitations: Hoists may not be suitable for areas with low ceiling heights or space constraints, limiting their usability. If you’ve decided a service pit is probably the best option for you, read on below for some further considerations before you install. Service Pit Design Tips Length of the pit Whether you work with standard-sized cars, trucks, or specialised vehicles will influence the length of your service pit. Additionally, consider the clearance requirements needed for technicians to move comfortably underneath the vehicles. Space availability within the workshop also plays a significant role in deciding pit length. It's important to ensure that the pit's dimensions align with the available workspace without compromising other operational areas. Consulting with design experts or experienced pit installers can provide valuable insights into optimizing pit length based on your specific requirements and business needs. A full-length pit is normally 25 metres long and is often referred to when you can park a full-length truck and trailer unit over the pit and work on the complete length of it. Drainage Proper drainage is critical for supporting a safe and functional service pit that prevents water accumulation and debris buildup within the pit. Without adequate drainage, water pooling can create slip hazards and potentially damage equipment or vehicles. Designing the pit with integrated drainage channels or grates ensures that liquids, including water, oil, and other fluids, are efficiently channeled away from the workspace. Consideration should also be given to the location of drainage outlets to prevent clogging and facilitate easy maintenance. Consulting with drainage experts or incorporating industry-standard drainage solutions can help guarantee longevity and functionality of the pit. Ventilation Adequate ventilation is important for maintaining a safe and healthy working environment. Proper ventilation systems help remove exhaust fumes, airborne contaminants, and stagnant air - making a safe working environment for mechanics and those using the pits. When installing ventilation systems, they need to be compliant with industry regulations and safety standards. These systems typically include exhaust fans or ductwork to expel polluted air from the pit area and circulate fresh air. Adding sensors to keep an eye on air quality and kick in ventilation systems when pollutants get too high is a good way to boost safety measures. Teaming up with a ventilation expert ensures that the ventilation setup is right for your workshop's needs. Lighting LED lighting strips or overhead fixtures are commonly used to provide uniform and glare-free light, minimizing shadows, and enhancing visibility. Strategic placement of lighting ensures good coverage across the entire pit, including critical work areas and access points. When designing the lighting layout, a designer can help you decide on brightness levels, colour temperature, and energy efficiency of your lighting choices. Fluid delivery and disposal Efficient fluid delivery and disposal systems are integral components of a well-designed service pit. Planning for the installation of fluid delivery systems, such as oil lines and waste oil disposal mechanisms. Integrating fluid delivery systems directly into the pit streamlines maintenance tasks, like fluid changes and lubrication, reducing downtime and enhancing operational productivity. Incorporating waste disposal systems, such as oil sumps or collection tanks, eases the proper disposal of used fluids while minimizing the environmental impact. Collaborating with designers and engineers provides valuable guidance on selecting and installing fluid delivery and disposal systems compliant with industry regulations and environmental standards. Access and safety Features like non-slip flooring and robust handrails play a critical role in preventing falls, especially in environments where slippery substances are present. Additionally, clearly marked emergency exits facilitate rapid evacuation during emergencies. Regular inspections and maintenance of safety features are vital to ensure everything remains in proper working order. Many of our clients have installed service pits in their workshops, and include features such as two side-by-side pits with a workshop area to allow for the transfer of parts and the ease of working on parts without having to transfer them out of the pit area. Foresight into your pit design will provide efficiency and safety for your team. Talk to our team to discuss your service pit requirements. Talk to our team to discuss your service pit requirements

Are you an aspiring or seasoned industrial commercial landlord looking to enhance tenant attraction and retention in your next property? In today’s market, prioritising low vacancy rates is at the top of many landlord's minds. Whether expanding your portfolio or entering the market for the first time, it’s important to develop buildings that stand out to potential tenants and cater to their evolving business needs. In this article, we look at the key considerations and design features that will help you appeal to, and keep, good-quality tenants in your next commercial build. Location: The foundation of success The right plot of land is what will bring your build to life. Like residential investments, location is key when it comes to commercial construction. The right location can help your future tenant increase their brand visibility, run a streamlined operation and attract more customers. The location you settle on will need to take into consideration the industry, potential target market and competition for your future tenants. Council building regulations will also need to be investigated. If you already own the land, think about what a future tenant may look like for you, based on the area - what industry would they be in? Would the site limit the kind of business that could operate from there? A modern facility in an upmarket industrial park may appeal more than a remote rural setting where growth and capital gains are slower, but then you must weigh up the cost of the land and the amenities nearby. Consider what the transport links are like. For many areas, this is evolving with enhanced infrastructure, a classic example being Levin. Transmission Gully has made the area far more accessible to Wellington with more industrial commercial businesses now basing themselves in the town. There may be key links like this that would be more attractive to future occupiers. Read more about selecting the right plot of land for your commercial project here Balancing act: office, yard, and building allocation Having the optimum allocation of office, yard, and building space is important when wanting to appeal to a wide range of businesses. While there are some general guidelines, like having about 80% of the space dedicated to the warehouse and 15- 20% for offices, each business has its unique needs that must be considered if you have a particular tenant or industry in mind. While investors often want 50% cover of the site, high-growth tenants want space to expand their operations. Businesses with lots of machinery or inventory will need plenty of yard space for manoeuvring and storage. They might also need larger paved areas. Additionally, having enough parking and loading and unloading zones is crucial for most commercial business's convenience and functionality. Building an agile future: customisation through design In today's evolving business landscape, commercial spaces need to be able to adapt. Forward-thinking design isn't just about creating impressive-looking buildings; it's about empowering business leaders to envision their long-term business plan and success within a space that can flex and grow with their needs. From shifting market dynamics to fluctuating staff numbers, modern workplaces need to be agile enough to accommodate changes and meet future demands. Some businesses might prioritise open-plan office spaces for collaboration or they can customise themselves through dividers - others might need a more expansive warehouse with increased height and width, or the removal of centre columns for storage or production. These considerations extend beyond aesthetics and delve into what different businesses require. Being able to adjust the layout to fit these needs makes the property more attractive to a wider range of businesses. Spaces that can easily adapt to specific industries and operational requirements are the ones that stand out in the market. Going green: healthy and happy workspaces Incorporating natural light and green spaces is not only beneficial for the environment but enhances the overall appeal of properties and can drive demand in the future. By strategically placing skylights, large windows, and embracing open-plan concepts, landlords can create spaces that are flooded with natural light, reducing the need for artificial lighting and enhancing the energy efficiency of the building. Designing for anticipated future tenants' sustainability needs is an important consideration too. Ensuring the building can accommodate solar panels, costing up EV chargers and looking into recycling water onsite can all be thought about during the design phase of the build. Integrating green spaces, indoor plants, or outdoor garden areas can improve air quality, boost employee morale, and foster a sense of well-being – something that will make your commercial space stand out from the rest among prospective tenants. Fitting out to fit in: Interior design The importance of interior design is being increasingly recognised by commercial businesses and plays an important role in shaping the atmosphere and functionality of workspaces. It goes beyond aesthetics to become a reflection of the business's identity and values. Working with designers to optimise lighting and architectural features can transform the interior into an inviting and inspiring environment. Many businesses are after a space they can personalise to reflect their brand and culture. Allowing them the freedom to incorporate their identity through the interior can create a sense of ownership and investment. In some situations, you may already have a client lined up before construction. In this case, it can be a great idea to bring the tenant in to discuss the interior design early in the process. This proactive approach means that tenant-specific input can be considered, producing a final design that aligns perfectly with their preferences. Balancing act: Dollars vs design Balancing cost with design is important when developing commercial properties to attract high-quality and long-term tenants. While cutting corners on construction costs may seem tempting, it often leads to compromises in quality that can deter desirable tenants. Investing in the style and durability of the build, such as opting for low-maintenance cladding and high-quality materials, demonstrates a commitment to long-term value and enhances its marketability. Attention to detail in architectural design and exterior finishes can set the property apart from competitors while limiting the number of fixed walls and structures inside allows future tenants to make the building their own. We've covered key aspects for ensuring long-term tenant attractiveness to ensure you get ROI and reduce the likelihood of vacancies in your next commercial build. If you're looking to take the next step or want to explore your next project idea further, book a meeting with one of our Project consultants today. Alternatively, for more information on selecting the right land for your build, download our Guide to Selecting Land today.

Are you preparing to upgrade your business premises or invest in the commercial property market? In this article, we reflect on what happened in 2023 and explain what to expect in the coming year. Commercial property market 2023 Before we look ahead to the current year, it helps to reflect on the previous year. The economy cooled in 2023 but commercial property markets were resilient, with favourable supply and demand dynamics. Commercial property sales In 2023, the commercial property market was hit hard by high inflation and interest rates. A report by CBRE found the overall value of commercial sales dropped by $374 million from the second half of 2022, due to low sales volumes and a large gap between offers and asking prices. By the second half of the year, things were looking up. In October, the executive chair at CBRE, Brent McGregor said "There's a lot of capital sitting out there waiting to be deployed” and he anticipated prices would start to elevate again soon. Industrial market rent Industrial market rents rose 10%, following strong economic growth in 2022. As this growth continues, you can expect this rising demand to continue as businesses recover from the economic downturn. New ways of working Following the rise of remote working, many offices have altered the way they operate. As a result, we are seeing new ways of working within commercial spaces, including hot desking, flex space, breakout areas, and collaboration spaces. If you want to design a commercial office building in 2024, consider if these features are worth incorporating. 2023 projects at XL Structural We worked on several large-scale projects and special features, including service pits, specific firefighting requirements, and office spaces. This indicates that businesses and investors are looking for high-quality, reliable buildings that offer long-lasting value. Commercial property market 2024 In New Zealand, the projected value of the Commercial Real Estate market is expected to reach NZD 363.40 billion in 2024. It is also anticipated to exhibit an annual growth rate of 3.07%, leading to a market volume of NZD $415.52 billion by 2028. Due to increased foreign investment and strong economic growth, the New Zealand commercial real estate market has experienced a surge in demand. This year, we’ve got some fantastic structural steel commercial build projects in design and planning, especially featuring full interior design of office spaces. Southland and Manawatu/Taranaki seem to be key areas of development. Keep an eye on our projects page for updates. Commercial Building Depreciation NZ Before 2010, building owners could claim depreciation on all buildings used for generating income or conducting business. On Budget Day in 2010, all tax claims relating to building depreciation were suspended. Fortunately, it was reinstated for non-residential buildings in 2020. This means that commercial building owners may be able to claim a deduction for the amount lost in depreciation. Budget estimator tool If you already know what you're looking for, use our Budget Estimator Tool. Simply enter the specifications of your proposed building and we’ll email you the estimated budget range for your project. Alternatively, if you wish to discuss your project with a member of our team, don’t hesitate to contact us directly.

A double-level office building is a great way to get more square metres without using any more land. It also creates a pleasant and elevated workspace with a view. At XL Structural, we design and deliver new commercial buildings, often with a mezzanine floor. It's easy to incorporate a mezzanine floor in to your building plans, provided the structure is strong and well-engineered. Please note that we do not retrofit mezzanine floors into existing buildings. So what should a mezzanine be constructed with — concrete, timber-framed, or cross-laminated timber (CLT)? While the answer ultimately depends on your requirements, we explore the pros and cons of each option in this article so you can make an informed decision. Pros and cons of timber-framed Pros and cons of concrete Pros and cons of CLT panels Which type of mezzanine floor is best? Timber Framed mezzanine A timber-framed mezzanine is constructed of timber joists that span between supporting beams or load-bearing walls. The joists typically have 400mm centres and can be standard SG timber (which is a milled timber such as 190x45, 240x45, or 290x45) or a laminated joist such as LVL, glulam, or hyjoist. Insulation is placed between the joists and plywood or strand board flooring, about 20mm thick, is laid over the joists. If your floor requires a fire rating, the underside of the floor will need to be lined in fire-rated GIB. The ceiling can then be painted and left as is but, often in larger offices, a suspended ceiling will be installed to give space for services, air conditioning ducts, and similar features. Supporting walls will need to be lined in fire-rated GIB and supporting steel will need intumescent paint or fire GIB. Below is a cross-section of a timber mezzanine floor: advantages of a timber-framed mezzanine This flooring system is used all over New Zealand in most houses and many commercial buildings, meaning all builders are familiar with it. Onsite changes are typically straightforward as the whole floor system is constructed onsite. For smaller mezzanines under 150m², it tends to be a simple, cost-effective option, especially when the ground floor has walls that can be made load-bearing and are no more than 6m apart. disadvantages of a timber-framed mezzanine The main disadvantages arise for larger floors over 150 to 200m². In timber framed mezzanines, noise transfer is typically a lot higher than with concrete or CLT floors. This can be partially mitigated with insulation and larger joists but can be quite distracting when there is a large upper level with a lot of people working. As the above images show, there are a lot of components to the floor, especially when a suspended ceiling will be installed below. This means that on larger floors the labour component can quickly add up, which will make it cost much the same as a concrete floor. Additionally, on larger floors, a lot of steel or laminated beams and joists are required to avoid too many load-bearing walls. This also pushes the cost closer to concrete and CLT. Concrete mezzanine A concrete mezzanine consists of a concrete slab poured in situ and supported by steel beams and columns. The steel beams and columns are installed to provide a steel structure that supports the concrete. Then, a tray system such as ComFlor or HiBond is laid on top of the steelwork. Reinforcing is then laid on the floor, exterior boxing is placed and concrete is poured on top of the tray, or deck. The concrete already has a fire rating so only the supporting steel needs to be fire-rated. This is usually done with intumescent paint or it can be lined with fire GIB. Often the underside of the floor is left exposed and services are also exposed, creating a modern industrial look. Alternatively, a ceiling can be suspended to conceal services. Below are some example details: advantages of a concrete mezzanine Short build time For a large floor over 300m², a concrete system becomes more cost comparable or even cheaper than a timber-framed option. While the steel and concrete in a concrete mezzanine floor add to the cost, there are fewer labour hours required, resulting in a shorter overall build time and lower labour costs. Acoustics A concrete floor has much better acoustic properties than a timber floor. If you have a large upper level with a lot of people working, a concrete floor will reduce the noise transfer between levels. Visual Leaving the concrete and supporting steel exposed downstairs gives a clean industrial look that is also very low maintenance. Functional Concrete and steel are a common system that commercial builders are well-versed in. There is also onsite flexibility before the pour as the formwork and piping can be adjusted. disadvantages of a concrete mezzanine Weight A concrete floor is heavy, adding to the load on the ground. This is usually not an issue, unless the ground is poor. In this case, the Geotech investigations will advise the best course of action. As the floor is heavy, there are usually more bracing elements required in the office, in the form of steel diagonals or ‘K’ frames (pictured below). Angle Braces These braces are not necessarily a large cost but do tend to impact the windows. Either the space where there is bracing lined over and ‘hidden’ or the brace is placed in front of the window as part of the look of the building. CLT Panel (Cross Laminated Timber) In principle, a CLT panel floor is very similar to a concrete floor. However, instead of pouring a concrete floor on top of the steel structure, a 126mm thick timber panel is laid on top of the steel. The timber panel consists of solid layers of timber glued together to make an extremely thick, large panel. For further explanation, refer to this brochure. Like a concrete slab, CLT panels have a fire rating so it is only the supporting steel that needs to be fire rated. This is achieved with intumescent paint or a fire GIB lining. Often the underside of the floor and services are left exposed or a ceiling can be suspended to conceal them. advantages of a CLT panel floor Faster installation CLT panels are a faster option than concrete because the timber only has to be laid onto the steel, whereas concrete requires trays and reinforcing to be installed and then the concrete poured and cured. Therefore, a CLT panel floor is likely cheaper than concrete and is more efficient. In a recent project, the builders allowed three days to install the CLT panel floor and had it completed in less than a day. Easy installation While concrete mezzanine floors often require specialist contractors for the Nelson studs and concrete pouring, CLT installation is easy to learn. With a bit of training, a builder can easily install CLT because it is a timber product, using typical fixing details. Lighter CLT panels are a lot lighter than concrete, placing a lighter load on the footings, supporting steel, and bracing elements. Sustainable Red Stag says that every cubic metre of timber stores 250kg of carbon, while every cubic metre of concrete produced emits 110kg of carbon. Visual It can also look really smart underneath if it is unlined and left as timber, but this is a matter of opinion. disadvantages of a CLT panel floor Supply In the past, the supply of CLT has been unreliable, which is why XL Structural Steel and other commercial builders have not used it as much. It has typically been used in speciality projects that use a full timber system, or multi-level apartments. A lot of CLT comes from Australian-based XLAM but, recently, more manufacturing space has opened in NZ, giving more options in the industry. Span Structurally, the timber does not span as far between intermediate beams as concrete. However, this does not typically have too much of a cost impact. Additional protection CLT requires additional protection, such as GIB, to get a fire rating above 60 minutes. Fortunately, this is not usually a problem as most floors typically only require a 60-minute rating. Additionally, the CLT surface is not as hard-wearing as concrete and may need coating to maximise durability. However, most offices have carpet or tiles anyway. Adjustments CLT panels are more difficult to adjust onsite because the penetration notches and joints are done in the factory with a CNC machine. This means it is treated similarly to pre-cast concrete, with its own set of shop drawings. Which type of mezzanine floor is best? If your offices are small and the upstairs is less than 200m², a timber-framed option is more cost-effective because NZ3604 can be used to design the offices. This avoids extensive engineering and a lot of steel beams and, if your downstairs space has a lot of rooms that aren't going to change, the lower level walls can be made load-bearing, saving on bespoke beam designs. If your office space is over 200m² per level, a concrete floor or CLT is likely better in terms of cost and functionality. At XL Structural Steel we have an in-house team of commercial and industrial building specialists. If you're still unsure or would like advice more specific to your situation, talk to our in-house team of commercial and industrial building specialists who can work alongside you to understand your building project needs and collaborate with you to define your design and budget requirements.