As with all purchases, a modular building has its pros and cons.

Probably the most compelling reason why companies turn to modular buildings is the speed of construction. A standard five thousand square foot building like a medical clinic can be erected in as little as 45 days vs. the 6-month timeframe for traditionally built buildings. Faster construction means that a company can generate revenue more quickly and start paying for overhead costs sooner.

Modular buildings are also less expensive than conventionally built buildings. Where you might pay $100 to $130 per square foot for a site-built medical clinic, modular building pricing can range from $55 to $60 per square foot, including installation. The actual price you will pay for your specific building can be dramatically higher or lower than these ranges. However, you can always expect to pay less than you would for a traditionally built building.

Prefab modular buildings can also be relocated. This can certainly work to your advantage if you anticipate having to move sites. That way, you do not have to re-invest in constructing another building from scratch, with all its related costs.

There are also tax savings related to modular buildings. There are tax savings associated with leasing a building vs. buying one. Even if you choose to purchase a modular building, you can benefit from a more favorable depreciation schedule. Traditional building costs are usually amortized over 35 years. Modular buildings can be recognized under an accelerated depreciation schedule of 7 or 12 years, which can be a real unheralded benefit. Make sure to consult your accountant about your specific situation before making a final decision.

The primary drawback of modular buildings concerns its look and feel. If you want a more custom, architectural look to your building, modular buildings are probably not well suited for you. However, it should be noted, that there has been an increasing trend to permanent modular buildings where a portion of the construction is done on site.

Basic modular construction elements like the elevated entrance and somewhat shorter ceilings can make the buildings look less stylish. While there are certainly ways to address these design elements, doing so can increase your overall building costs.

For those who expect to see their building constructed piece by piece, the modular building process can be somewhat disconcerting. Rest assured that modular buildings use the same building materials as conventional construction and must meet all the same federal, state, and local building codes.