OURODevelopment

Construction economics

What Does a $2M Renovation Actually Buy?

Owners are usually surprised by the split. Finishes are the visible part and rarely the expensive part.

Project breakdown

On a substantial renovation, the majority of the budget typically lands in scopes an owner will never show a tenant: structure and envelope repair, mechanical, electrical, plumbing, life safety and code-driven upgrades.

Finishes — flooring, paint, cabinetry, fixtures — are what people picture when they hear renovation, and they usually account for a smaller share than expected. That is why cutting finishes rarely rescues a budget that was wrong about systems.

The useful exercise before you commit: ask for a preliminary budget organized by cost category rather than by room. If the categories are missing, the number is not a budget yet.

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