Custom Commercial Construction for Tenant Build-Outs

Custom commercial construction is the perfect way to extract the most value from your rental dollar. When you move your business into an office space, you might have the opportunity to negotiate a tenant build-out to improve the space to make it just right for you.

Negotiating Tenant Build-Outs

Many cities are either faced with a glut of office space, or lack it to the point that they are refurbishing older buildings to make space available. In any case, commercial landlords want to keep building occupancy high and keep tenants happy. As a result, tenants often have the ability to negotiate a "build out allowance" to make improvements to the site to suit their business.

The landlord may offer two options:

Turnkey. He will make the improvements per your instructions and offer you a turnkey office that is ready to occupy. While you turn your design plans over to him, he will get the work done. Types of improvements you request might include painting, adding or moving walls, outlets, phone and data jacks, closets, and carpet. While you can select colors and styles, you have no control over the contractor the landlord chooses.

Tenant improvements. In this case, the landlord will agree to offer an allowance for build-outs. You can choose your own contractor to make the improvements you need, subject to negotiation with the landlord. The advantage is that you can use your own contractor for customized commercial construction and assure the improvements are to your specifications.

What Determines the Build-Out Allowance for Commercial Construction?

In either case, the amount that the landlord will allow for improvements is usually figured per square foot and is based on the tenant, the condition of the building, the rent, the level of finishes required, and the length of the lease. A prestigious client willing to commit to high rent in a desirable building for a 10 year lease would get a higher allowance than a new business renting a lower quality building on a short term lease. Some landlords only offer the opportunity for tenant-build outs to well-established business clients who agree to longer leases, but this is not always the case. Most commercial landlords understand the importance of keeping tenants satisfied so that they aren't tempted to look elsewhere for better space.

If you are a current tenant looking for an office remodel, or trying to find the perfect space for your new business, choose the best in custom commercial construction, Topp Construction. As experienced commercial contractors, we deliver high quality, affordable office remodeling.