If you are negotiating a lease renewal, or you are executing a new contract, you might want to renovate the existing office space. Retail leases and retail renovations will be a bit different, but the process is still the same.
The scope of an office space renovation can range from paint, and a new carpet to the complete empty shell build out. Before any lease negotiation, you should be aware of the whole cost of improvements including design, necessary permit fees, and the cost of commercial construction renovations.
Sometimes, even the simplest remodeling project can grow in complexity along with the accompanying steady increase in price. Underestimating a build out or office renovation could force you to come up with additional cash or compromise some key project elements. Mulheron Construction can help you avoid most of these headaches with better and complete information presented at the beginning of a project.
Here are some cost guidelines for basic tenant improvements of a typical commercial office space, including architectural design cost, permit fees and the cost of construction improvements:
• Carpet and Paint (Unoccupied Space): $5-$8 per square foot
• Carpet and Paint (Occupied Space): $8-$11 per square foot
• Major Remodel: $34-$50 per square foot
• Minor Remodel: $14-$26 per square foot
• Cold Shell Space (New Construction): $58-$75 per square foot
• Warm Shell Space (New Construction): $48-$65 per square foot
These prices are generalized using ‘Building Standard’ improvements, but they give you an idea how much each commercial renovation element will cost.
A category of expenses often overlooked in a lease negotiation is FFF&E which refers to Furniture, Fixtures, and Equipment. These expenses are not covered in the landlords Tenant Improvement Allowance, so it is incumbent on tenants to understand, budget and plan for FFF&E expenses.
Here are some basic FF&E cost guidelines for typical office tenants:
• Systems Furniture: $2,000-$5,000 per cube
• Office Furnishings: Up to $50
• Moving Costs: $1 per square foot and $350 per cube
• Cabling: $1-$3 per square foot
An experienced project manager at Mulheron Construction understands unique tenant needs and can determine the project details required for the large variation in types of spaces.
Mulheron Construction uses this information to create an appropriate Tenant Improvement Allowance you can use for landlord negotiation. As the project manager, Mulheron Construction develops space plans, preliminary budgets, and project timelines. Mulheron Construction evaluates each space and tenant requirements to recommend a build out or commercial office renovation. Those recommendations along with cost will be the basis for the proposed Tenant Improvement Allowance for each property.
The Mulheron Construction proposed budget ensures that the client will know the cost of their build out or office renovation including upgrades to building code requirements. Additionally, Mulheron Construction will point out potential hidden costs which can add significant delays and additional expense to the renovation.
Mulheron Construction will guide you through any commercial space renovation or build out and provide you with a realistic budget that covers architectural/engineering design, permit fees, and commercial construction or build out. Mulheron Construction will also advise you of existing mechanical, electrical and plumbing equipment out of date or deferred maintenance issues.
Having Mulheron Construction on your side will ensure that you have the accurate information required to move forward with landlord negotiation. Call us at 954-294-5504 and let us help you plan and build your new space.
Specializing in build-out needs for commercial projects in Fort Lauderdale, Palm Beach and Miami, Mulheron Construction offers a complete suite of planning and scheduling services.