If you are a commercial property owner with space to lease, including tenant improvement in the lease sweetens the pot for the potential lessee. What is tenant improvement? Definition: any upgrades made to space in order to better equip it to meet the tenant’s needs. If you’re planning to offer tenant improvements for your properties, here are some things to keep in mind.
- Consider carefully before you commit. Before you even sign a lease, have a clear picture of your tenant’s creditworthiness and reliability, the funds you have available for a tenant improvement allowance, the length of the lease, and the economic forecast for your area. Once you have a handle on all of that, you can begin your negotiations.
- Be clear about the timing. Tenant improvement construction can take anywhere from weeks to months. Make sure everyone, from the tenant to the tenant improvement contractors, is in agreement about the timeframe for the renovations. Work with contractors you trust to get the job done in the allotted time and be certain that the tenant understands the timeline as well. Ideally, the work will be done before the first rental payment is due.
- Work within the space you have. A new space is a blank canvas, but existing spaces can sometimes require someone with a little more vision to see what they can become. Renovations to existing spaces can sometimes become costly, so make sure your tenant has realistic expectations about what can be accomplished with the tenant improvement allowance. The best approach is one of flexibility and willingness to appreciate what the existing space already has to offer, envisioning how best to use it without doing extensive remodeling.
- Promote a “needs over wants” outlook. While making a plan with your tenant, determine what’s really necessary and what’s on the wish list. By prioritizing needs, you’ll get more accomplished while staying within your budget.
- Faced with the choice, pick function over form. The most beautiful space in the world will do your tenants no good if it doesn’t meet the needs of their business. While renovating, direct your focus to necessary items like ADA compliance, the function of the HVAC system, and staying up to code with things like fire alarms and sprinkler systems.
Reliant Group, Inc. offers tenant improvement options that Range from replacing finish materials to creating custom buildouts tailored for the tenant’s business branding, strategy, and usage requirements. Our expertise in color selection, finish materials, furniture and décor selection, casework, ceiling design, and much more keeps us at the top of the tenant improvement construction industry. In addition, we specialize in commercial moving, furniture installation, and procurement, secured storage, managed network services with procurement and asset management with logistics and FF&E services. One of the few companies providing all these services in Puget Sound, we can provide you with one call, one contact solutions. Contact us to learn more or call 206-575-6727 to schedule a consultation.