Understanding the Difference between a Tenant and a Turnkey Build out
Every business owner wants their office space to make a good first impression and to continue to have a strong impact. The look of your office is a part of your overall branding efforts. You must create an environment that is attractive to staff and clients alike. Most companies look for ways to save money, and spending on construction might not seem to be an essential step. Building tenants can sometime negotiate improvement budgets in their leases. This will allow them to improve the look of their office spaces without affecting their bottom line.
With this type of build-out, the office is ready when the tenant needs it. The business will move into a space that is already prepared and customized to their needs. This means that the cost of the work is borne by the landlord. Before the tenant moves in, both parties discuss the extent of the renovation. The tenant has the responsibility to draft a plan for the remodeling, which will then be discussed with the landlord. This covers features like the number and position of electrical outlets, the lighting and the partitions. The tenant usually has the option of choosing the color scheme. Unfortunately the tenant does not have any say in the choices of materials or the contractor who will do the work. There is no guarantee that the work will be done to the highest standards.
For any business that can afford it, a tenant build-out is usually the better option. Ultimately it gives the tenant control over the renovation. Not only can the business owner deal with aesthetic and technical details, this also involves the choice of contractor. However there is still some negotiation involved during lease discussions.
Understanding the Costs
Build-outs, like other types of renovations, vary in cost based on different specifications. If the building is basically a shell, the overall costs will be higher since it will require doors and possibly ceilings and floor and wall finishing. In some markets, the cost of labor is higher due to union involvement. Build-out costs usually have range of between $40 to roughly $55 per square foot. High end remodeling such as you would see in a prestigious law office or a bank would run much higher.
Your build-out decision should be guided not just by your budget, but also by your understanding of tenant vs turnkey options, and the needs of your business. Even if you do not have a big budget, having more control over the project might be better for your business in the long run.
Commercial Remodeling in Chicagoland
Remodeling in Chicago can be risky. You never really know who to trust. Any handyman with a tool belt can present himself as a general contractor, but the builders here at Bart’s Remodeling are so much more. We’ve worked with homeowners throughout the greater Chicago area for many years. We’re proud of our work and display it in our gallery. Take a look at some of the incredible commercial remodeling projects we’ve done through the years and then give us a call at 312-714-5454 to discuss remodeling your basement with us.