Mistake 1: Trying to Do-It-Yourself
Consider this recent DIY horror story and the lessons learned:
The scenario:
A very successful business lady had just leased a new office space.
She found a great location, contacted the landlord and negotiated the lease agreement. The landlord had even agreed to provide a Tenant Improvement Allowance. She felt good about the 'WIN' and signed the contract.
She had been through the tenant improvement processes before, so, she felt she knew exactly how the build-out should go.
The problems:
After signing the lease, she began contacting General Contractors for quotes. Blown away by the costs of two previous GC’s, she found me. We discussed her requirements and I shared several ideas that would lower her costs, speed her time to open, help with traffic flow, and reduce noise and heat. Thrilled with my ideas, she was excited to get started.
Unfortunately, the costs were higher and the timelines longer than either the tenant or landlord anticipated. The landlord reneged on a critical part of the renovation and she was not able to open for business when the first rent payment came due.
The relationship quickly deteriorated and neither were willing to compromise. More than five months later, the property is sitting vacant, not generating revenue for either party, an avoidable loose-loose.
Lessons learned:
- Hire a Realtor before making any decisions. There are far too many variables at play that can have direct impact on your success or failure.
- Engage a General Contract Right Away to define your scope of work, your costs, and timeline BECAUSE all these impact your transaction.
- Equipped with your Tenant Improvement costs AND construction timelines, your Realtor can negotiate the best possible terms and protect your interests.
I hope this proves to be helpful.
Jeff Hurst
NorthStar Commercial Interiors LLC
972-813-9190