When you begin to consider the build out process for your newly leased property, it is important to know the type of space you hope to gain as a result as well as the details of your all-important lease. With the landlord’s permission and sometime with his or her assistance, you can turn a commercial property into the space you envision for your business or organization with a commercial build out. A build out, simply stated, is the process of taking a current commercial property and tailoring it to suit the needs of your company.
Getting What You Want
At first glance, many tenants search for the ideal property, often assuming that they must accept the office space as is, with no alterations of any kind. This is not always the case, as commercial tenants often lease space with the understanding (in writing, of course) that certain changes will be made prior to or during their lease of the space. This is the build out when office spaces are expanded, changed, or improved to suit their business.
Of course, arriving at this point will often require a bit of negotiation with the landlord on your part, or on the part of your real estate broker or tenant representative. Your landlord may agree to a new building installation which includes a tenant’s architectural drawings carried out by the landlord with standard materials. In this instance, if you, as the tenant, desire upgrades, you cover the difference in costs. Other landlords prefer to let the tenants hire their own licensed, insured architects and contractors to complete the build out, with the landlord reimbursing the tenant up to an agreed upon cap. In some cases, free rent is provided in lieu of construction and in other cases, a landlord may reduce rent based on the proposed changes to be made.
Another point to consider is in larger cities, you may run into union buildings. Union buildings require the use of union contractors, electricians, plumbers, and so on, which typically means higher costs. In most cases, union building build outs costs twice as much as other properties.
Build Out Costs
As just mentioned, build out costs can vary greatly depending on your needs and your location. Even so, general estimates will give you an idea of costs to anticipate. Typically, a partial build out, meaning paint, carpet, and other cosmetic changes will cost around $8 – $10 per square foot per update needed (featuring standard materials), while a full-blown build out with standard finishes and materials will come in at around $40 – $60 per square foot. If you opt for a more elaborate build out with higher level style and higher-grade materials and finishes, the cost will rise as the material costs do into the range of $80 to $180 per square foot. As previously mentioned, if you have selected a union building, your costs will likely be double those amounts.
Once you choose the appropriate build out to meet your needs and negotiate with your landlord to get the job done, next you’ll want to consider contractors who can meet or exceed your desires for your new space. In doing so, you want an architect or construction company who has a positive reputation and references of their successful build out projects. You want a company who will be dedicated to completing your project according to your specifications, while remaining on budget, and on time. A company who only uses the highest quality contractors and materials, while delivering high standards with regular progress reports, will provide the greatest value to your company in the long run.
Perillo Construction, Inc. offers exceptional commercial build outs from storefronts to medical buildings to offices, each with quality, style, value, and unsurpassed functionality.