Tenant ImprovementsIn doing a business plan and negotiating a lease what is the best method for obtaining information on the cost of tenant improvements? Is it safe to use generic "cost per square foot" numbers or should I wait until I can get a finished plan priced out by a contractor? Use a contractorNever commit to a lease without a fixed quote on the full scope of your proposed build out. Yes, you definitely want toYes, you definitely want to know the total cost prior to fixing a lease. So many things can escalate between initial negotiations and final negotiations. You must get a contractor unless you are planning to do it all youself because you have the ability to do it. But remember there can be hidden costs come up as you install your fixtures etc. so that having a contractor give you a quote could actually save you some money. However, even if you do end up doing it yourself you will definitely need to have a lawyer to check over your lease prior to signing anything. So your total costs will have to include the cost of material, the cost of a contractor if you use one AND the cost of a lawyer prior to fixing the lease in place. Fashion1 Sponsor |
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Tenant Improvements
Before getting to the stage of negotiating a lease, you'd want to have a business plan in hand. A business plan is an evolving document. In the early stages, you could get away with generic 'cost per square foot' estimates to initially determine if your project might be feasible.
As you get closer to negotiating a lease you want to know, as accurately as possible, what it is going to cost you. If not, you'll be in for some unpleasant surprises.
The cost of your tenant improvements will depend on what you want to do with your store. Are you planning to do just the basics, and a coat of paint before you move your fixtures in? Or are you giving the exterior a facelift and finishing everything with expensive materials?
Unless you have a bottomless pit of money, which most of us don't, you should know as much as you can about what it's going to cost you - before you commit to anything.
Melanie McIntosh
Inspire Retail Solutions
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