What to Consider When Selecting a New Investment Property

Posted on April 25, 2022 by bafcorp20

Many experts will agree that investing in commercial real estate is a wise endeavor. Several of the most successful businesswomen and men in the world have an investment property or two within their portfolios. If you are currently searching for some income-generating commercial real estate to invest in, continue below to review some top considerations that will help you be the most successful with your business enterprise.

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Commercial Real Estate Research

When you are preparing to view potential investment properties, research and strategy are essential. The more you know, the more successful you will be in choosing the right properties for your business objectives. Ultimately, you want your commercial property to produce income. In order to achieve this goal of profitability, it is critical to know what to look for. Here are 5 key considerations that will help in your search:

Location

When it comes to real estate of any kind, location will always be a top priority, as it is always a top factor in terms of filling vacancies. Everyone looking to rent wants the best location they can find, but for commercial real estate, some locations are better than others. Think about the surrounding infrastructure, current construction activity, roadway systems, ease of access, interstate/highway entry, surrounding retail, seasonal activity, population, and more.

Existing Listings and Vacancies

Another important consideration when viewing potential income properties is the current vacancies and active listings included. Are there a high number of active listings? How reliable are they? Is the number of active leases influenced by seasonal activity or cycles? These are important questions to ask. As for vacancies, the same need applies. High vacancy could mean a future of low rental rates and mediocre profitability, while low vacancy can portend higher rental rates due to higher demand for space.

Property Taxes

Your next consideration is property tax. After all, you can’t avoid Uncle Sam, especially in the real estate industry. With each new viewing, you need to have a full understanding of the property tax requirements. But do not be scared off right away by high property taxes, as this could be an indicator of just how high in demand the location is. This is common among Class A commercial properties. Also be aware that high property taxes can exist in less desirable neighborhoods as well.

Average Rental Rates

Numbers are important for any type of investment, so knowing the average rental rates in the neighborhood and surrounding region is a vital step toward selecting the right investment property. The rental income for an investment property is the main contributor to your investment’s profitability. You should perform a comprehensive rental history evaluation and cost foreseeability analysis to fully understand just how much rental income you might be looking at, now and in the future.

Future Development

Smart business people are forward-thinkers. And with choosing a commercial real estate investment property, it is important to understand the potential for future growth and expansion. You can rely on the municipal planning department to provide information on any localized developments that have already been zoned. Furthermore, you want to touch on the volume of construction currently taking place in the area. If there are many, it is suggestive of an area in high demand or showing significant growth, both of which would be beneficial to your bottom line.

Are you looking for a commercial management team to help you with preconstruction service in Indiana? Contact BAF Corporation at 317-253-0531 for p reconstruction services in Indianapolis, including commercial space planning and permitting. We serve clients all throughout the state of Indiana.

General Contractor Advice on Building a New Commercial Space

Posted on November 5, 2021 by bafcorp20

Are you an ambitious real estate developer preparing to construct a new commercial space here in Indiana? Before getting started on your promising entrepreneurial endeavor, continue reading for some critical general contractor advice on building a new commercial space, including who to trust for superior commercial construction services near you.

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Top Factors for Constructing a New Commercial Building

The top five elements you should be placing your focus on right now in preparation for a build-out or new construction project are as follows: your budget, your potential space, references for commercial general contracting company, a written commercial construction estimate, and relevant municipality requirements or regulations.

Budgeting

Budget is the foundation for your commercial build. Your budget analysis and planning will set the tone for your commercial construction project. You must consider your overall vision. Do you have enough capital to make your vision come to life? It is important to be pragmatic when setting a budget for your commercial construction or build-out.

If leasing an existing commercial space, you want to consider mandatory or hidden costs prior to signing the commercial lease, as well as any future expenses you might incur. A professional commercial general contracting company can assist you with comprehensive budget analysis and cost foreseeability evaluations to ensure that your vision and available capital lineup.

Commercial Space Planning

Your next focus is commercial space planning. Building from the ground up will have a separate set of considerations compared to leasing an existing commercial space and building it out to retrofit your business’s needs. Either way, it is important to ensure that your space will be structured and designed specifically to meet the needs of your businesses function and overall culture.

Your trusted commercial general contractor can ensure that your new commercial space is both functional and culturally sincere, while also flexible for future expansions. In fact, commercial space planning and permitting are often a prime service offered by construction companies.

General Contractor References

As you might already understand, the commercial construction company you choose will have a significant impact on the outcome of your project. For this reason, it is vital to ensure you are choosing a superior commercial general contracting company to build your new commercial space or retrofit an existing one. One way you can ensure you are choosing the right company is to request general contractor references. References help you understand a contractor’s scope of capabilities and professionalism.

Written Construction Estimates

It is important to always request and receive a comprehensive and itemized written estimate from your commercial general contractor. As we all know, having things in writing is the best way to maintain an equal and transparent understanding between two parties in a contract. One way you can tell you were working with a true professional in the industry is if they offer detailed written estimates, require itemized written estimates from subcontractors, and have no problem examining all estimates line by line with you.

Municipality Requirements

All municipalities have commercial construction requirements, building code standards, permitting laws, and similar regulations. A good commercial construction company will have the knowledge and resources to confirm these requirements prior to breaking ground on any type of project, whether a new construction build or commercial build-out.

Furthermore, most municipalities will require detailed written plans and architectural drawings before any construction can take place. Reputable commercial general contractors and construction companies will prepare these blueprints ahead of time, which allows them to provide more accurate estimates.

Are you looking for a professional commercial construction company in Indiana to get you started with a new build or build-out? Contact BAF Corporation at 317-253-0531 for superior commercial general contracting services in Indianapolis, Indiana.We serve commercial and industrial clients all throughout the state.

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Commercial Lease Terminology You Need to Know Before Signing

Posted on October 22, 2021 by bafcorp20

Before signing on that dotted line, be sure you are clearly interpreting the commercial real estate leasing jargon on your contract. Continue below to review some of the most common commercial lease terms and definitions you need to know if you want to make an informed and intelligent decision on your new office or business space.

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Vocabulary Terms on a Commercial Office Lease

Understanding the terms and conditions of your commercial lease is quite difficult if you are not familiar with the standard terminology used within such contracts. It can be especially troublesome if you wish to amend or get out of your commercial lease at some point.

Some of the most common terms you will come across, on your standard commercial office lease that is, include common area maintenance, load factor, option to purchase, parking ratio, right of first refusal, rentable square footage, usable square footage, and request for proposal. Let’s start with these:

Common Area Maintenance

Common area maintenance (CAM) is a general term used to describe the stipulations surrounding shared maintenance expenses for the building you are leasing within. In a multi-unit building, each tenant may be required to contribute to such costs, which are typically decreed within the lease.

Load Factor

Load factor, or core factor, is a calculated number generated by the property management company or landlord of the building. This number represents the division of common area square footage among each tenant. This number allows you to interpret the value or fairness of your rentable square footage.

Option to Purchase

Option to purchase is a term typically reserved for leasing a whole building, not just a unit within a multi-tenant office building. Option to purchase is a section that will describe clauses for a tenant who wishes to buy the building outright one day. An Option to purchase agreement should take into account the amount of rent paid to date.

Parking Ratio

Parking ratio simple refers to the number of parking spaces allotted to the tenant’s rented space. For a multi-tenant office building, there could be a certain number of spaces assessed for employees and visitors.

Right of First Refusal

Commercial leases that have a Right of First Refusal clause gives tenants an upper hand when new space becomes available in the building. A landlord must notify you and offer you any newly available space before advertising it to the general public. Basically, you have first dibs, plus to right to refuse it.

Rentable Square Footage

Rentable square footage is the total square footage of the space you are leasing, plus any shared or communal spaces that other tenants use as well, such as outdoor break areas, hallways, break rooms, cafeterias, bathrooms, and elevators.

Usable Square Footage

Usable square footage is generally less than the rentable square footage. It represents the total square footage of the space that can actually be occupied and used. For instance, if an office space has a basement level that is unfinished, it is not usable, and therefore, would not be included in the usable square footage value.

Request for Proposal

A Request for proposal is also called an RFP document. This document is constructed by you and your broker, then submitted to the commercial landlord to notify them of what you expect and want with your leased space. The landlord can respond by informing you if their facility meets your needs or not. This document tends to commence the lease negotiating process.

Are you looking for help procuring and designing a new office space for your business? Contact BAF Corporation at 317-253-0531 to speak with our esteemed commercial construction management teams about our space planning and permitting solutions we offer in Central Indiana.

How Drone Technology Benefits the Commercial Real Estate Proprietor

Posted on April 2, 2021 by bafcorp20

You may have seen the neighbor’s kid outside playing with their drone toy; or perhaps even have one in your own possession for recreational uses on trips and to document special occasions. But have you ever thought about the benefits drone technology offers our society in a more professional way? When it comes to the commercial real estate market, drones are making a big difference in quality, efficiency, and value for proprietors. They are literally revolutionizing commercial real estate marketing and procurement.

Continue below to learn how, and where you can get started with space planning for your commercial location in Indiana.

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Commercial Drone Applications and Advantages

Commercial real estate brokers, proprietors, and builders can all benefit from the various applications of drone technology in their industry. From selecting a site location and marketing packages to property management, logistics, site planning, utility mapping, and more. Just see for yourself:

Selecting a Commercial Property Site

Drone technology helps brokers list and market the commercial properties they are outsourced to sale, which in turn, makes it easier and more convenient for proprietors to choose the site they want. It also makes it easier for the actual builders and architects to map out their blueprints. There is only so much of a property you can see and learn through demographic data and 2-D images on your computer; and high-resolution aerial drone imaging gives this added insight to all the unique and relevant elements of a property’s location, including how it sits in the surrounding market, the nearby infrastructure, the flow of people and traffic, and so much more.

Property Maintenance

Drones are being used more and more in the facility maintenance industry because they deliver an easier and more comprehensive way of inspecting a building and the surrounding premises. Roof inspections are safer and simpler, while all other exterior elements can be examined and managed accordingly, including siding, HVAC systems, pavements, and more. Smaller drones can be applied in the same way for interior property inspections and management. They are also applied for local site inspections for construction projects, reducing the needs to travel all over to make daily assessment rounds.

Operational Logistics

There are various roles, aside from inspection, site selection, and facility maintenance, in which drone technology can improve how we operate in the commercial world. Your company might have certain needs that can be met with the use of drones, such as vendor and delivery service, video marketing, staff audits, project monitoring, market research, and more.

A Fair Warning: The Federal Aviation Administration has set forth concerns, and now new regulations, that govern the commercial use of drones. In fact, since 2015, a pilot’s license is required to pilot a drone for commercial applications.

Are you ready to get your commercial build in motion? Contact BAF Corporation at 317-253-0531 to learn how we can deliver organized and professional commercial space planning and preconstruction services that meet your business objectives. We serve Indianapolis, and all of Central Indiana.

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Advice for Selecting a New Office Location

Posted on November 30, 2020 by bafcorp20

Although online “influencers” and millennial moguls might insist that all you need for a successful new office location is a space with a little character in a trendy neighborhood, there is much more to commercial real estate leasing than just that. Take it from the experts in commercial space planning and preconstruction who know exactly what it takes to find the perfect new commercial site that meets all current and future business objectives for owners.

Continue reading to learn some of this professional advice, and where to get customized commercial space planning assistance you can trust.

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How to Select a New Commercial Location

Choosing a new commercial site is not as easy as picking out the best building in the biggest city in your state. In fact, the process is much more intimate than that, as there are several specific and personal variables that must be considered in order to make the best selection. Not only should you take into consideration your own business objectives and personal preferences, but you should also factor in your customers’ and employees’ needs. By balancing all of these difference variables, you can place yourself on a promising path toward finding the perfect fit for your new commercial location.

Factors to Consider for Commercial Site Location:

► Community Reputation. Is the neighborhood geared toward a specific industry? Are other businesses doing well? Or are there many businesses choosing to not renew their leases? Is the crime rate high? How is the accessibility in and out of the community? What are the average traffic conditions like? Is it close to other places you will be doing business or entertaining clients? Does it have many places for shopping, meeting, and dining?

► Employee Amenities. Is the new area easily accessible to your staff and/or clients? Are there nearby shopping centers, restaurants, and similar consumer amenities for them? You see, staffs tend to be more productive when they are happier. Being able to visit a restaurant or run errands on their lunch hour provides them with a level of convenience that makes them happy, which can be profitable for business owners.

► Wi-Fi Coverage. It is important to think about your office’s technology needs. How much wi-fi coverage does your new office need? Is there plenty of wireless coverage? Would you require a wireless booster for sufficient wi-fi coverage? Does the new area have adequate cell phone tower coverage?

► Accessibly. Does the location have highways, interstates, and exits that make it easily accessible to both staff and clients? What are the traffic conditions usually like? Is there adequate parking for employees and customers? Is there a fee for parking? Are there public transportation options? Is the city or government planning any upcoming road construction that would impact your business?

Once you have considered all of these factors, you can better narrow down a selection of listings with professional commercial space planning and permitting services. Talk to a local and trusted commercial construction company who specializes in helping business owners with real estate development. They can even help you understand the factors to consider before signing a commercial office lease, which is an entirely separate but equally important aspect of choosing a new commercial site location.

Commercial Space Planning and Preconstruction in Central Indiana

Contact BAF Corporation at 317-253-0531 for trusted commercial space planning and preconstruction services in Central Indiana and its surrounding locations. Our skilled and experienced commercial general contractors serve all corporate, commercial, and industrial industries in Indianapolis and all throughout the state. Call today to request free information or to schedule a consultation.

The Importance of Commercial Space Planning Service

Posted on September 18, 2020 by bafcorp20

When you hire a commercial general contractor and architect, they have one objective in mind: to bring your vision to life through innovative and creative design solutions. Because every commercial construction client has their own unique needs, their space must be specifically designed to meet these needs, including representing the business’s overall culture and creed. In the commercial general contracting industry, we call this service space planning, it is a critical step to opening the doors of your new commercial business or property.

Continue reading to learn why space planning is so important, including how it can set the path for a future of success.

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Commercial Space Planning Basics

Commercial space planning is more than just interior design for a business. There is a lot more to the space planning phase of the commercial construction process than just fabrics and furnishings. A business’s space must be strategically mapped out, constructed, and organized to deliver a streamlined operation, promote staff productivity, and support efficiency in terms of cost, energy, and labor. With all that being said, let’s take a closer look at what commercial space planning services are all about.

Space planning organizes all aspects of a business’s interior design and operation, from furniture and lighting, to load bearing walls, space dividers, walkways, communal areas, ergonomics, and more. By implementing a perfected space planning design, your business can enjoy higher staff and client retention, which means more money in your pocket at the end of each quarter! In fact, there are many more aspects of space planning than just the interior layout and function. Commercial general contractors will also manage needs like land acquisition, site evaluations, construct-ability reviews, permits, building codes, audits, security, and more.

Here are some common commercial space planning services you can expect from an established and professional construction company:

✏ ZONING AND PERMITS
✏ SITE SELECTION/EVALUATION
✏ PRECONSTRUCTION
✏ COMMUNITY DUE DILIGENCE
✏ LAND ACQUISITION
✏ ECONOMIC INCENTIVE INQUIRIES
✏ FEASIBILITY STUDIES
✏ CONSTRUCT-ABILITY REVIEWS
✏ SITE AUDITS
✏ SITE ENTITLEMENTS
✏ FINANCIAL ANALYSIS/STRUCTURING

Why Choose Space Planning Services for Your New Business Location?

Overall, commercial space planning is the most thoughtfully-organized approach to designing and building a new location for your business. This approach delivers an entire resume of benefits, including cost-efficiency, budget control, and an overall competitive advantage, all of which allows you to utilize your commercial space for a higher return on investment.

Indianapolis Commercial Space Planning Contractors You Can Trust

Contact BAF Corporation at 317-253-0531 for trusted commercial space planning and permitting in Indianapolis, Indiana and its surrounding locations. Our skilled and experienced commercial general contractors deliver a streamlined construction process that meets all defined engineering and design specifications, procurement, schedules, and budgets for your commercial office space or business. Call today to request free information or to schedule a consultation.

Vital Corporate Real Estate Leasing Tips for 2020

Posted on August 24, 2020 by bafcorp20

As a corporate company, whether just starting out or long-time established, one of the most critical decisions you will make will be renting office space. Not only are there several corporate real estate renting mistakes that can drastically impede the success of your company, office leasing is usually one of the highest expenses as well. For these reasons and more, it is important to do your research before finalizing any office space leases as a corporate tenant.

Continue reading to learn some of the top corporate real estate leasing tips you should consider and discuss with your commercial space planning and permitting consultants.

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When it is your duty to find a new location for your corporate office, be sure to keep these cost-saving tips in mind:

✅ See the Unit in Person

Especially with the current epidemic underway, many commercial brokers are doing business online. As a result, it is becoming more common for commercial proprietors to sign a lease for office space they have never actually seen in person. Although this is deemed acceptable by a large market of tenants, it can be a devastating mistake. Always view and tour a potential office space on-site, not just over the phone or via online listing.

✅ Rent the Right Amount of Space

When it comes to finding an office space, consider the Goldilocks rule. You want the right amount of space that is neither too small and nor too big. Not only can the wrong amount of office space hurt you financially, both short and long-term, it can also cause additionally risk to various aspects of running a business, such as accident liability, building codes, and more.

✅ Do Not Focus Solely on Cost

There is a lot more to renting office space responsibly than just your budget. By leading your search on a budget-focused agenda, you could be putting yourself at a disadvantage. Although budget is an important standard, there are other factors can determine the value of an office space, such as amenities, price per square foot, surrounding community traffic, and more.

✅ Probe the Surrounding Community

On the topic of the surrounding community, be sure to set your sights on other factors that influence an office space other than the actual location. Not only should you be looking at the office space in person, you should also be looking at the surrounding area. You will want to consider the average commercial rental rates, average annual income among residents, crime statistics, nearby businesses, neighboring competitors, and more.

✅ Read the Fine Print in Full

When it comes to leasing a new corporate office space, one of the most vital tasks is to read the contract in full. Commercial leases are much more complex, and require acute attention to detail and fine print. You will want to understand lease clauses, key dates and deadlines, tenant improvement allowances, and more. You should also hire a commercial real estate lawyer to translate any confusing parts of the lease to you.

Commercial Real Estate Space Planning and Permitting in Indianapolis, Indiana

Contact BAF Corporation at 317-253-0531 for trusted commercial space planning and permitting services in Indianapolis, Indiana and its surrounding locations. Our expert space planning and design teams ensure all aspects of your commercial construction and post-occupancy business objectives are met in an ordered fashion, on time, and within budget. We serve all corporate, commercial, and industrial industries in Indianapolis, Indiana and its surrounding districts. Call today to request free information or to schedule a consultation.

Top Factors to Consider When Planning Your Commercial Space

Posted on June 1, 2020 by bafcorp20

As a business owner looking to renovate or build a new location, professional space planning should be at the top of your to-do list for getting started. It is an important part of ensuring your needs are fully met, and that your overall business objectives are feasible. Whether you are relocating your business, opening a new one, or looking to renovate your existing property, a professional space planning and design team is your all-inclusive solution to ensuring success.

However, deciding to hire a professional commercial construction company for space planning services is just the beginning. Continue reading to learn the top factors you will need to consider when planning your commercial space.

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Commercial Space Planning Professionals

The primary job of an architect and commercial space planning team is to bring your vision to life by thoughtfully transforming or creating a space that truly speaks to your business’s culture, while also supporting employee satisfaction, efficiency, function, and cost control. They do this by applying modern design solutions and strategies, including a concentrated approach to define and organize all elements of a commercial design-build project.

They also meticulously consider all other details, from owners’ priorities and business objectives, to economic incentive studies, constructability reviews, zoning and permit applications, building codes, disability access requirements, security, circulation patterns, daily function and workflow, privacy, and much more.

Space Planning Factors to Think About:

☑ Organization’s Goals – What are the goals for your commercial remodel or build? Are you looking to enhance employee contentment or engagement? Are you wanting to improve staff health? Or perhaps you wish to incorporate a more collaborative environment? Be sure to consider your short and long-term goals for your business when planning your space.

☑ Day to Day Activity – Consider the type of staff and guest activity that occurs on a daily basis. Are your employees sitting at desks all day? Are they working in groups or in solitary? Perhaps your employees are doing a combination of both? When planning your space, think about what kinds of interior designs will accommodate or enhance the type of daily operations for your industry.

☑ Ergonomics – On the topic of daily activity, if your business is one in which staff or clients are sitting for extended periods of time, you may want to consider incorporating modern ergonomic designs into the office setting. Such ideas include ergonomically-friendly couches, chairs, and benches. Other ideas include desks that adjust for sitting or standing, or changing the location of trash receptacles to promote more movement among employees throughout the day.

Who to Trust for Superior Commercial Space Planning in Indianapolis, Indiana

Factors to Consider Before Signing a Commercial Office Lease

Posted on March 17, 2020 by bafcorp20

Moving into a new commercial space is a serious undertaking. There are several complex steps to complete in order to get your business back to fully-operating at peak performance following a relocation. But first you must sign a new lease. Before you do so, there are various considerations to apply to your decision in order to protect yourself from entering into a contract you later regret.

Continue reading to learn which factors should be at the forefront of your mind when discussing a new commercial real estate lease prior to signing.

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General Commercial Lease Inquiries

With all new commercial real estate leases, there are basic questions that you must ask. These answers will give you the foundation of knowledge you need to decide whether or not to move forward with the lease agreement. Such questions include the following:

What is the Type of Lease Offered? There are different types of lease agreements for commercial properties, including net leases, gross leases, triple nets, and absolute triple nets.

What are the Terms and Conditions? You must read through all terms and conditions, and derive questions pertinent to your overall objectives and limitations.

Is the Lease Negotiable? Most often, lease agreements are flexible, and landlords will negotiate certain elements in the lease’s terms and conditions.

Will Rent Increase? Rent escalation is common in commercial real estate, like stepped increases that periodically increase in fixed amounts, or increases tied to Consumer Price Index.

Can You Sublease? Long-term leases might contain a subleasing and assignment clause that allows you to lease out all or a portion of your space to another tenant in the future.

Comprehensive Facility Touring

Always be sure to tour the facility as thoroughly as possible before signing a lease. You want your potential commercial space to have an inviting and functional atmosphere. When taking your tours, be sure to focus your attention on cleanliness, attractiveness, curb appeal, practicality, degree of remodeling or renovation needed, and amenities available, like parking, cafeterias, bathrooms, break rooms, lobbies, and more.

Neighboring Properties

Before entering in a legal contract that binds you to a commercial office space, it is wise to first check out your future neighbors. Consider the local businesses and buildings surrounding your potential space, including the actual proprietors and contemporaries you will likely encounter on a regular basis. This could easily thwart your interest in a new commercial space. For instance, if your business is a Zen spa, you wouldn’t want to lease a space directly below a dance studio or next door to a drum store.

Renewal Processes

It is wise to ask about the lease renewal process before making any agreements. Inquire about the terms and conditions of renewing or terminating the lease. In some cases, a tenant is required to notify the landlord within a certain time period that they wish to remain in a lease, while others do not. Communication guidelines and requirements for commercial leases vary from landlord to landlord. So, always be sure you fully understand your role when it comes time to renew or terminate your commercial lease.

Leasehold Improvements and Maintenance

Another important topic of discussion to cover prior to signing a new commercial lease are leasehold improvements. This includes facility maintenance. Questions to ask include, “Are you allowed to modify the space to meet your business’s needs?”, “Is the landlord willing to make tenant improvements before you move in?”, “Is the tenant improvement allowance enough?”, and “Is a maintenance program included in your lease?”

Professional Commercial Space Planning in Indianapolis

Call BAF Corporation at 317-253-0531 to learn more about planning a new commercial space for your business. We provide full-service commercial space planning and permitting services in Indianapolis, and throughout Central Indiana for all businesses and industries. Whether you’ve already moved into a new space or still searching for one, our commercial construction management team has what it takes to meet your unique specifications. Call our office today to discuss your commercial space planning and tenant improvement needs, today.