Mariwyn Evans writes about commercial real estate for REALTOR® Magazine. You can reach her at firstname.lastname@example.org.
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
CommercialSource.com is evolving from its original iteration as a property listings site to a broader information hub for commercial real estate practitioners. The site now features news feeds from GlobeSt.com, one of the leading commercial property news sources. The site will also feature a streaming Twitter feed of broad interest to commercial brokers and developers. An education section will link to helpful podcasts and webinars. CommercialSource.com’s biweekly newsletter, The Source, has been transformed into a blog enabling all participants to join in the conversation about what’s hot in the commercial real estate arena.
As for listings, REALTOR.com will be the go-to site for commercial listings. To get your listings on the site, find out if your MLS or CIE already has a third-party agreement to post directly onto http://commercial.REALTOR.com. If it doesn’t, you can request one. For those who don’t participate in an MLS or CIE, you can continue to submit listings free of charge to CommercialSource.com, where they will be aggregated to REALTOR.com for display.