The main reasons tenant build-outs are necessary are to change the aesthetics and function of a commercial facilities space. A new tenant won’t necessarily have the same needs for the space as the previous occupant. For example, a buffet style restaurant layout cannot be converted overnight into a high end dining establishment with just a new coat of paint. Modifications to the interior traffic flow, design, size, and layout of the kitchen, bathrooms and dining area are often necessary to help make the space better fit the new tenants needs for his or her venture.
A general contractor can make the desired changes to the space, but as the owner or facility manager, here are a few things that should be considered before embarking on a tenant build-out:
Establishing a budget for a tenant build-out is the first step in any renovation project. If the goal is to rip everything out and renovate a commercial real estate space down to the studs, the budget had better support new drywall, baseboards, ceiling construction, paint, fixtures, and labor – to name a just a few expenses.
A qualified general contractor will have experience with many different construction project services such as wood framing, ceiling systems, finish carpentry, tile, electric, plumbing, HVAC, and more. They should also have the knowledge to be able to estimate the costs of each of the phases of a project to keep the renovation within budget and on schedule.
Often in commercial real estate, a build-out allowance is provided by the landlord to help the new tenant create a space that better suits his needs. This renovation allowance can vary from property to property and is at the discretion of the building owner. Usually with a build-out allowance there are set parameters detailing what the allowance can and cannot be used for. Typically permits or architectural plans do not qualify as construction costs and build-out allowances cannot be used for these expenses. Tenants also usually will need to have their plans approval by the building owner prior to the start of construction.
Accurate project estimates are crucial to keeping within budget for a tenant renovation. The best way to estimate a project is to use real-world information gathered from a variety of sources. A general contractor that has kept a close eye on trends and maintained detailed reports from past projects is more likely to be successful at keeping a project within budget.
Additionally, the general contractor should ensure that all costs are considered and all estimates and prices are verified before the customer is presented with the build-out estimate.
Whether a facility is fully operational or not, a general contractor understands that the tenant must occupy the space in order to create revenue. Therefore, tenant build-outs are typically fast-paced projects that are kept to a strict construction schedule so that the renovation can be completed on time.
About American Facility Services
AFS General Contracting, a division of AFS, is a State Certified General Contractor. With offices in Orlando, Jacksonville and Tampa, AFS offers a wide range of including: general contracting, tenant improvements, build-outs, renovations, new construction, facility maintenance services and more. AFS provides a complete range of services, so our clients have the convenience of working with a single provider for all their commercial property needs. Contact AFS today at 866-793-3735 or visit our website at http://www.afsflorida.com for an online proposal.