Expo centers are large exhibitions spaces. They offer commercial space for showcasing products and conducting other commercial activities. While expo centers are great for commercial purposes, their development comes with unique challenges. Read more below to discover four common pitfalls in expo center development.
Expo center development costs are undoubtedly a huge challenge. The sheer size, location (mostly in urban areas), and unique physical attributes make expo center development expensive. Other indirect cost factors include opportunity cost, property taxes, and recurrent expenses, like security. If you have to prolong the project, expo centers will incur huge operating costs. In most cases, expo centers won’t start making a profit until you utilize a significant portion of the commercial space.
Scarce Expo Center Development Expertise
Expo centers should be high-quality and innovative. In fact, most will stand out because of their unique design. However, true experts are scarce and come at a cost. The best architects with experience in designing expo centers charge premium fees. However, it’s possible to find experienced full-service expo center architects that design expo center interiors and coordinate planning and construction perfectly at a fair price. You just have to know where to look.
Since construction takes time, some expo centers may have questionable feasibility when you complete them. Today, most urban centers have expo centers or other commercial spaces that can serve similar purposes. As a result, you must support expo center development by thoroughly researching existing market needs. In a highly competitive market subject to change, developers who fail to do proper feasibility studies often face challenges, like stiff competition, which can lead to closure, losses, or other unfavorable eventualities. There’s always a concern that the expo center will fail to attract enough business to generate the appropriate revenue.
The suitability of a location can change after a feasibility study. Cities are perfect locations for expo centers. However, ever-changing factors, like politics, security, shifting labor market, etc., can make a location unsuitable in a short time. When this happens, developers may have to repurpose the space or close shop.
In a nutshell, the four common pitfalls of expo center development are cost factors, lack/scarcity of expertise, competition, and location challenges. However, developers can overcome most of these issues if they hire seasoned expo center development architects and get the design right.