Businesses rely on many factors when picking an office space to settle down in, but there are 3 major things that could make or break the deal: adequate space, safety concerns, and the cost of rent. Does your office interior build out check off all 3?
In general, interior office build outs are handled in one of two ways, either turnkey or tenant improvement projects. Tenant improvement is when the tenant largely or fully funds the renovations, per an agreement with the landlord. This gives the tenant the option to do as they please in regards to picking high or low-end materials, hiring contractors, and so forth.
A turnkey project means the landlord gathers information regarding tenant needs and then works from there to create the perfect space. In this instance, the landlord fully funds the project with a pre-signed lease agreement as promise for repayment. The drawback is that tenants often get shortchanged in terms of low-end materials or other short cuts in which the owner is trying to save money.
What Do Businesses Look For In A Rental Space
Knowing where to make cuts and where to splurge is key to keeping tenants happy and your properties rented out. There are 3 key things businesses look for in regards to office interior space that you don’t want to skimp on.
1. Is There Enough Office Space?
Square footage is important, but even more important is what you do with it. A business must provide adequate workable space for every employee to complete his or her intended tasks. It is perfectly fine, and actually preferred, to have a mix of smaller and larger work areas, as different employees have different workspace needs.
Companies are increasingly interested in having large collaborative workspaces for employees to put their heads together, as well as individual offices or work areas. If you don’t have much room to work with, even creating a small gathering place for workers is better than nothing at all. Not to mention, with the right teams of engineers and architects on the job, pretty much anything can be accomplished regardless of square footage.
2. What Is The Rent?
Rent is critical to how fast a property rents or if it remains rented out. If you are charging well over market value it’s going to be pretty hard to keep tenants. You should never assume that you can charge way more than neighboring buildings because yours is ‘nicer.’ To a certain extent the appearance and quality of a building interior is going to impact price, but only to a certain extent.
In most cases, the rent is predetermined before the interior office build out is scheduled to begin. Still, it’s not uncommon for a landlord to assume he or she can raise the rent at a later date. Going into renovations with these unsigned expectations never ends well. It’s important to go into it with confidence about your return on investment according to the current agreement.
If your building has multiple tenants there may be a shared ‘common area’ that all tenants use, perhaps a courtyard with picnic benches, a gym or daycare center for employee children. This space comes at an additional price, but there’s only so much tenants are willing to pay for it. Keep that in mind when outfitting these areas.
One way to find out what your tenants want is to hold a group meeting where all office workers express their opinions regarding what sort of shared spaces would be most appealing to them. This allows you to offer tenants exactly what they are looking for, and as a result people are willing to pay more for it. This is so much better than guessing only to find out the space you developed isn’t beneficial or used much at all, leaving it virtually worthless.
3. Is The Office A Safe & Healthy Environment To Work In?
Above all else, public health and safety is the most important factor businesses look for in an office space. Important things you can invest in during an interior build out include a good electrician and plumber, as well as a proven and reputable architect. Any staircases, elevated walkways and other office elements must be 100% safety tested. Offices should include proper ventilation as well as a working air conditioner and heating system.
You also must ensure there are no signs of mold or other harmful allergens that could make tenants sick. A business can back out of a lease agreement if the building is proven to put employee health and safety at risk. Therefore, in order to maintain good relations with tenants it’s adamant to make sure your building is safe above all else.
The Key To Successful Interior Office Build Outs For Landlords & Tenants
There are many other important elements that businesses look for when deciding on the right building for them, such as location and even parking availability. Yet, safety, health, adequate space and the cost of rent tend to come first in the decision making process.
PCI provides leading general contracting services that will keep your project in line, under budget and always a grade above the competition. We are here to help you create an office space you feel comfortable funding and your tenants want to rent.