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The Hidden Costs of Commercial Renovations

Last updated on December 8, 2010 by Sozo Staff Leave a Comment

Many commercial tenants will receive a build-out allowance from their landlords. This will provide them with money to renovate, expand, or remodel their existing work space. Often times the length of your lease will determine just how flexible and generous your build-out allowance will be. This ensures that the space will be created particular to the tenant’s business needs.

In many cases, remodeling and renovation will take place well after the tenant has began their normal business functions. The tenant may be in the space a few months and realize that one wall needs to be removed to allow for a larger waiting area. Or, they may realize that the existing layout does not provide enough showcase area for their products. Whatever the situation, the tenant will determine that a renovation needs to occur in order to optimize their business’ success.

Their first step will usually be to obtain an estimate. The tenant can create their own layout and renovation plan. Or, they may want to consult an experienced contractor who can offer tips and invaluable advice to optimize workable space and appearance. The contractor will then create an estimate. They will use the floor plan, projected material/labor costs, and their past experience with similar projects to create a reasonable estimate. This estimate must often be approved by the landlord before the project can move forward. Tenants will then look through a wide variety of samples including paint, carpet, millwork, and trim to create the workspace or store that fits their company’s image best.

Many commercial tenants are uncomfortable with a construction company, complete with tools and machinery, imposing on their customers’ and employees’ comfort. In many commercial renovations, the contractor must be willing to work after hours or weekends in order to move furniture, renovate, paint, etc. without interrupting the daily flow of the business. This ensures that customers and employees remain happy and the job still gets done. In many cases, simply closing for a week would create a financial hardship to a company and is simply unrealistic.

Remember that the appearance of your commercial space is a direct reflection on your business. You don’t want customers to be turned away by an out-dated store front. Your goal is to catch potential customers’ eyes and draw them in to your store. Also, you should consider your employees. In order to hire and retain the most qualified, experienced employees, the atmosphere in which they work must be pleasing. Very few employees enjoy working in an office with peeling paint and shag carpet.

Take the time to create a floor plan with an experienced contractor that has completed several commercial renovations. D.R. Hartman Construction has recently renovated the Department of State cafeteria in Washington, DC to provide a more suitable dining experience for employees. Their experience on a design build job for Charles Schwartz & Son provided all utilities, finishes, and store front design and installation. Creating commercial renovations or construction for businesses such as the Department of State, Charles Schwartz & Son, the NAFTC training facility in Arlington, VA, Walter Reed Army Medical Center, and Layhill Golf Course has provided D.R. Hartman Construction with the experience necessary to provide a realistic quote, as well as complete the commercial project with minimal interruption to the business.

Filed Under: Construction

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