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Your company’s commercial office space is a key component of your business with it being your employees’ environment for 8+ hours a day and your brand’s outward appearance to customers. With productivity and first impressions on the line, it’s important that your office is functional, presentable, and tailored to your company’s specific needs. If you’re renting your office space, you may or may not have the ability for this customization depending on your lease. All leases are not created equal, which is why vetting your commercial landlord for what you will be able to do with the space is essential as you’re looking to find a new location. If you’re hoping to relocate your business, or are just getting started, here’s how to find, design, and build the perfect office space.
As you’re searching for a new commercial office space, the location and building itself will be obvious determining factors in your decision, but you should also keep in mind the tenant improvement construction process. This process changes from place to place depending on your landlord, and you can negotiate this as you discuss your lease terms. Your lease negotiations are a big factor in finding a new office space that will let you optimize your space for your employees and customers.
There are a variety of details that you should consider and discuss with your landlord as you’re talking through the lease agreement and what customizing your space might look like.
A T.I. Allowance is, as it implies, a negotiated amount that the landlord will give the tenant to make improvements and customizations to the space. Any additional costs beyond the allowance given will be paid by the tenant, but the space typically already has the basics such as walls, paint, outlets, and flooring. While the landlord only provides a certain amount toward the improvements, it gives the tenant flexibility and ownership over what’s done in the space.
A turnkey build out, on the other hand, holds the landlord responsible for all improvement costs. The tenant provides plans and cost estimates to the landlord, then the landlord will manage and pay for the improvements. While the tenant maps out the plans for the landlord, the landlord will ultimately decide the quality of work that will be done, and the build out cost is also typically factored into the rent.
When you’re discussing tenant improvement construction, it’s also important to note and specify which types of work can be done. Some landlords will allow cosmetic improvements, such as repainting walls or replacing floors, but may not allow structural changes, such as demolishing or installing walls, upgrading HVAC systems, or redoing electrical work.
If you’re making major renovations, such as demolishing walls, adding a bathroom, or rewiring an entire space, large projects take time. It’s important to account for this time and to set the lease agreements accordingly. Typically, you shouldn’t have to start paying rent until the substantial completion date.
These two terms may seem interchangeable, but there is a difference between rentable and usable space when discussing tenant improvements. Being able to make upgrades to “rentable” space includes common areas of the building, whereas “usable” space only includes an allowance for the actual functioning square footage of the building.
Once the lease agreements are settled and you officially sign off on your new space, unless your landlord is held responsible for the build, you’ll have to find a commercial tenant finishing contractor. They’ll help with the planning and design for the improvements, then give you an estimation of what it’ll cost to build out.
Similar to leases, not all contractors are created equal. When you’re looking for the company that will best meet your needs, you should consider the following:
Though you can estimate yourself how much these upgrades may cost, you won’t get an accurate quote until you discuss your project vision and needs with a contractor. After you and your contractor finalize plans and cost estimations, you’ll need to submit these plans to your city or municipality, and potentially your landlord, for approval.
Once you have full approval, you can start the build-out of your space. If you use a design-build contractor, you can be assured that the scope is clearly communicated and maintained from the very beginning, so there’s a smooth transition as the team starts to revamp the space.
Most contractors have a single point of contact throughout your project. It’s recommended to check in with your contractor and evaluate the progress regularly. You should ask to start receiving frequent reports to ensure the timeline is on track and to see the progress that’s being made. This also allows you to be aware of any potential delays, which may push back your transition into the space.
Once the construction and improvements are complete, you’ll have to have the space inspected and make sure you meet all regulations to receive a certificate of occupancy. This ensures that your space is approved by local authorities and that your new space is safe for both employees and customers. Once you’ve received this, your customized office space is ready for you to move in!
If you’re wanting to optimize your office space and are looking for a reliable design-build tenant finishing contractor, Premier Construction can help you transform your office. Premier Construction has helped several businesses in the Des Moines area transform their existing space to better suit the tenant. From minor modifications to a full-on renovation, we have the ability to handle it all. Contact us today to discuss your project needs and to get an estimation.