When it comes to renovating leased space can result in high expenses, and protecting your valuable investment is essential. However, you need to take the right approach with tenant improvement construction services to get your proprietor on board and reduce the costs. Therefore, to help, we have crucial steps your business needs to follow regarding tenant improvements.
Minimize Headaches Planning Effectively
First, you need to figure out the business space needs provided in detail when it comes to your leased commercial space. Then, consider your future growth, and ask a commercial renovations expert whether your workspace could be rearranged to use less square footage. Once you have the information, you can prepare a budget for tenant improvements.
Take Your Plans to the Landlord
When you have a leased office or are planning a lease, negotiation is the best time to discuss your renovation plans with the landlord. The important thing is that the proprietor consents to the project before signing any contract.
This will allow you both reassurances about your goals with future renovations. In some cases, the renovation plan is included as an addendum to the occupancy. Being open with the property owner leaves the doors open as they do not want to end up renovating, reducing the value of their property.
Thus with the tenant improvement constructions services from the contractor, you need to ensure that the building can support renovations or machinery structurally. As a further precaution, if the property owner disagrees over future work.
You can have a lease clause stating that if conflicts arise, it should go into mediation before legal actions occur.
Always Protect Your Assets
During a lease negotiation, ensure that the addendum clearly states what assets you can remove when vacating and not part of the building with your renovations. Technically, you can only take removable items like furniture and inventory or trade fixtures.
Usually, any assets fixed to the structure are considered part of the building and must remain unless you have made an exclusion in the lease. These can be from built-in shelving, flooring, and machinery. Hence, the lease must clarify all assets you can remove when you leave.
Ask for a Tenant Incentive
The truth is that most proprietors know that a valued tenant can help to improve their commercial real estate value. For this reason, never hesitate to ask for help with paying for the renovations. You may find the landlord will offer some cash to cover the costs, known as a tenant improvement allowance. Alternatively, the landlord may provide you with a few months rent-free or a discounted rate called tenant inducement.
Get Skilled Experts
When starting with quotes for your renovations, use trustworthy contractors that have handled tenant renovations before to do the job with quality work and on time. Check the company’s references and ask them to assess your renovation needs when it comes to permits before the time.
Lastly, get a trustworthy commercial lawyer specializing in lease contracts to review your agreement before signing it. Visit Astra Construction Management to learn more.
