June 2011: Commercial News Round Up

Tips for helping tenants get the most from their TI expenditures.

June 1, 2011

With money for tenant improvements tight for both landlords and tenants, a careful analysis of any TI construction bid is critical, says Timothy McEvoy, SOIR, principal of ExclusiveTenantRep in Virginia Beach, Va. He shares these tips for helping tenants get the most from their TI expenditures.

  • Require your contractor to bid out the work to three subs. If you must use the landlord’s contractor, ask that it do the same.
  • Reconfirm the actual square footage of your space, and be sure that all bids use the same figure.
  • Require that all bidders use the same form so it will be easier to compare bids. Divide costs into major categories such as demolition, mechanical, electrical, and drywall.
  • Make sure all construction companies and subs bidding on a project are bonded.
  • Know what the definition of "base building" really means in your lease and what the landlord is providing. For example, where landlords used to provide basic lighting fixtures, these are now typically added to the cost of tenant improvements.
  • Provide as much detail as possible with your request for bids.
  • Determine if the landlord will approve the companies that are bidding to do work in the ­building.
  • Watch for significant price differences in a bid category. That’s often a red flag that contractors have interpreted a request differently. Call each bidder and clarify the situation.

Broader Vision for CommercialSource.com

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