Optimizing capex investment: 4 factors behind success

In a year marked by uncertainty and inflation, rising interest rates make it crucial to optimize the capital expenditure invested in transformative assets. Our member Cador share their expertise drawing from 40+ years experience in the sector.

Capital expenditure optimization is the key to enhancing a property's value, with a special focus on innovation, technology, and sustainability. These three parameters are key elements that need to be integrated into the investment to maximize the upside potential of the asset.

Amidst economic challenges, strategic capital allocation becomes even more critical, and a well-planned approach to asset transformation can lead to significant gains and long-term value appreciation.

Value Engineering

Construction companies like Cador have a crucial responsibility when it comes to maximizing capital expenditure (capex) and executing each task efficiently. The belief is that "one day less of work is one more day of profitability," leading to increased yield percentages and attracting tenants faster at better rental rates.

Value Engineering is at the heart of this approach, where the focus is not just on sustainability and improving the building's energy rating but also on optimizing the investment in the project. Cador's expertise lies in taking existing items and enhancing their value and technical specifications.

Even when all project specifications are provided by designers or decorators, there is still room for improvement through effective communication, coordination, and sharing market knowledge. Construction companies regularly come across innovative solutions that can elevate the quality and value of the project.

For large property owners seeking to reposition their real estate assets and investments amidst rising interest rates, Value Engineering becomes a valuable tool. By leveraging expertise in construction practices and staying updated with market offerings, Cador helps clients achieve their goals in a rapidly evolving landscape.

The Key to Success

In 2023, Cador proudly celebrates 43 years of excellence in the construction market, a testament to their extensive expertise which sets them apart from others.

Drawing from their extensive experience, they list x key factors behind their successful Value Engineering:

  1. Knowledge of materials: a deep knowledge of materials that can reduce costs without compromising technical specifications and taking advantage of cost-effective solutions.
  2. Relationships and trust: Cador’s longstanding trust and collaborations with a vast network of manufacturers always unlocks access to a wide range of resources, maximizing investments and significantly reducing response times on projects.
  3. A team of specialists: having a dedicated team of skilled designers and architects is the key to stay at the forefront of material innovations and design trends. This expertise allows for the creation of innovative and modern designs tailored to different properties. By supporting project managers, designers, and decorators, Cador’s design team ensures a seamless integration of the best materials and practices in every project they undertake.
  4. Commitment to innovation: Cador's drive for innovation and sustainability is behind their department which focusses on technological and sustainable advancements. Constantly exploring cutting-edge products enables them to enhance efficiency and optimize space usage. Solutions like thermodynamic cameras are to measure customer behavior, whether they are employees or external personnel, facilitates analysis and space optimization. Motion sensors are another valuable addition, helping optimize supplies and leading to greater energy efficiency.

    Applications synchronized with the building's BMS, anti-dust mite carpets or floors, oxygenating paints, and adaptive colors that adjust light levels based on the specific needs and uses of each space are all solutions that support Cador’s pursuit of efficiency.

In conclusion, the key to maximizing investments and improving asset yield lies in Value Engineering, driven by technology and sustainability as tools for innovation. Efficiency serves as the guiding principle throughout the project, influencing both the design phase (space definition and study) and the execution of the work.

By continuously seeking to improve the materials used, Cador ensures that more can be achieved with less, delivering high-quality, sustainable, and cost-effective solutions for clients.

To find out more, please visit: Grupo Cador | Design and Build. Specialized in workplaces