Commercial space negotiations frequently involve discussions that relate to finishing newly-constructed shells or remodeling existing interior space. Typically, some tenant improvement costs will be borne by the building owner, particularly in a new building, while other individualized options are considered part of the cost of leasing and fall under tenant responsibility.
It becomes a factor in determining whether a particular lease space is an affordable option or not. For the most part, tenant finish-out are always subject to negotiation and discussion.
Be Aware of Options
Costs of commercial construction and commercial remodeling, however, vary greatly based on building type, location, and local code requirements. While most building owners are open to paying part of the expense in order to secure long-term, some requests — particularly those for specialty finishes, adjustment of interior spaces to conform to individual business needs, and even wiring for high-tech needs, are deemed a legitimate tenant responsibility even if the building manager or owner often retains the right to approve plans and specifications.
In the case of new building shell, the first tenant sometimes receives a basic finish-out allowance for such things as paint finishes, decorative lighting, flooring, window coverings and perhaps even interior room configuration. The ability to move into a newly-finished building that meets your needs and reflects your style preferences can be a major incentive to lease.
Monitor the Costs
In the case of necessary renovations to existing space, the most common practice is for owner and tenant to agree on a per square foot price. The disadvantage is that such an agreement is typically for reimbursement of actual expenses, meaning that a tenant will have to spend company funds prior to move-in and then wait for payment after submitting a detailed invoice for the work.
By working with one of the most reputable and efficient construction companies in Albuquerque NM, a firm that specializes in tenant build-out and improvement services, tenants will have the advantage of pertinent advice and professional service. Construction is a specialized undertaking, and we can help make it easier. In some cases, we can structure a contract so that you do not have to use your own funds and await reimbursement.
Give us a call, 505-888-1164, and let’s discuss your upcoming project?