Top 4 Tenant Improvements to Boost Office Productivity

Posted on September 26, 2022 by bafcorp20

If you are a business owner looking to increase the productivity and performance of your office, an custom tenant improvement plan might just be the right solution. But before getting started on tenant improvement, planning, learn how to stretch out your TI allowance to get the most from your office remodel.

Continue below to review the top 4 tenant improvements recommended to boost office productivity and ultimately, your bottom line.

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4 Tenant Improvements You Should Consider First

There are several ways to remodel and office space for the purpose of boosting efficiency, productivity, performance, and overall contentment among employees and visitors. However, the top four tenant improvements that tend to render the highest productivity yields include open floor plans, outdoor workspaces, multiple egresses, and quality soundproofing.

Open Floor Plans

Open floor plans are all the rage in the residential real estate industry, but they are now becoming more of a priority in the commercial space planning and design industry. If your office space is outdated with small hallways and offices, and open floor plan is the perfect TI to boost office productivity. Reduce the number of enclosed offices and open up the floor with cubicles, multi-desk workstations, multi-use work areas, and cubicle divisions.

Outdoor Workspaces

Outdoor workspaces are a popular design feature in today’s commercial office real estate industry. It is suggested by many studies that employees prefer having multiple options when it comes to workstations, break areas, and team projects. Outdoor workspaces are the perfect tenant improvement remodel for commercial offices because they provide these amenities, plus increase employee contentment by offering natural light and flora. For offices located in regions that experience colder seasons, sunrooms are the perfect alternative and highly versatile in terms of design and energy efficiency.

Multiple Egress Points

Incorporating multiple egress points is into your tenant improvement remodel is similar to opening up your office space to a more open floor plan. It allows for an enhanced flow of foot traffic, gives staff and visitors several ways to come and go, plus gives you flexibility in terms of divvying up your space.

Quality Soundproofing

A quiet office is an easier and more peaceful environment to work in. By better soundproofing your office, you can promote tranquility, which in turn will allow for more focused meetings, streamlined work, and overall staff contentment. Soundproofing remodels are especially important for office spaces that incorporate an open floor plan, or buildings located near noisy activities, like highways, airports, or school zones.

Are you a commercial landlord or tenant who wishes to improve the look, function, and overall success of your business? Contact BAF Corporation at 317-253-0531 to speak with an expert Indianapolis commercial general contractor about your options for tenant improvement remodeling and more. We serve clients in all industries and throughout all of Central Indiana.

Tips for Negotiating a Tenant Improvement Allowance

Posted on May 24, 2022 by bafcorp20

Negotiating a tenant improvement allowance takes some finesse. It is more than just numbers based on rentable square footage. If you are preparing for a tenant improvement allowance negotiation, there are some behind-the-scenes facts you should explore in order to get a fair and deserving TI allowance for your commercial build-to-suit renovation or business remodel.

Continue reading to learn some important tips for negotiating a tenant improvement allowance, including where to get trusted TI commercial renovation in Central Indiana.

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The Small Details Matter in a TI Agreement

In many cases, it is the smallest details that matter the most in a tenant allowance agreement. Landlords are seasoned when it comes to these kinds of negotiations, so it is important to prepare yourself with the right knowledge; knowledge that protects your right to a fair and honest tenant improvement allowance deal. Look further than just square footage and rent data. Instead, equip yourself with facts about the real economics of the transaction.

Beware of Turnkey Agreements

Most tenants will look at a turnkey tenant improvement agreement as a great deal. But you should not be easily fooled by these offerings. Flat tenant improvement amounts that include a turnkey clause are always in favor of the landlord or property management company. They typically offer these kinds of flat tenant improvement allowances to save themselves money. This is another element of tenant improvement allowance negotiations you need to be aware of: construction control.

Control Over the Construction

Often times, landlords or property management companies aim to claim control over certain elements of the tenant improvement construction. By adding this privilege into their TI agreement, landlords can appointment themselves as construction manager and hire their own builders and contractors. This forces you to relinquish control over the quality of materials used, the competency of the labor, potential labor markups, and more. In the end, tenants are given allowances that do not meet their expectations.

Measure Correctly

Although numbers are the only thing relevant in a tenant improvement allowance negotiation, they are critical to the process, nonetheless. The numbers you want to focus on during the process is the size and square footage of your rentable space. Not only do these numbers have a significant impact on your tenant improvement amount, but also on your rent. Do not fall victim to having your space incorrectly assessed and measured. In some cases, commercial spaces are measured to have more common space than they actually have, which gives a tenant more TI allowance, but causes them to pay more in rent.

Landlord Ulterior Motives

You’ve likely heard the classic economist’s rule, “there ain’t no such thing as a free lunch.” As for negotiating a tenant improvement allowance with a potential or future landlord, keep this old adage in mind. The landlord only cares about their bottom line, so everything they offer in a tenant improvement agreement is likely being balanced out somewhere else in their books. Common landlord tactics for this include higher rent, aggressive rent increase schedule, and stricter lease conditions.

Would you like some help getting the best deal for your tenant improvement allowance in Indiana? Choose BAF Corporation as your one-stop-shop for commercial space planning and tenant improvement construction in Indianapolis, Indiana.

How Today’s Technology Gives Commercial Tenants the Upper Hand

Posted on March 28, 2022 by bafcorp20

Although landlords and real estate developers also benefit from today’s technology, the current and evolving advancements available to commercial tenants really provides them with the upper hand in leasing commercial space. Continue below to learn the top 3 ways the technological advancements of today can help commercial tenants get the best deal in the best location possible, plus who to call for professional tenant improvement remodeling and construction in Central Indiana.

Corporate Tenants Benefit From Commercial Real Estate Technology

The evolving technology of today has really affected corporate tenants in a positive way by enhancing their experience in the commercial leasing industry. Depending on which resources and technologies chosen, corporate tenants can benefit from easier lease management solutions, expanded property touring, and successful negotiations.

Lease Management Solutions

Landlords and property management companies have long had access to programs and software systems that help them organize, track, monitor, and management their leases. But today, corporate tenants also have access to such technologies. As a corporate tenant, you can procure your own commercial lease office management software to help you keep track of important dates within your lease agreement, terms and conditions, lease amendments, claims, and more.

Even better, there are brand new software programs of this sort that will keep track of occupancy expenses and compare such expenses to your lease terms. This software can help lower business costs, especially for companies with a portfolio of multiple office leases.

Expanded Property Viewing

Not only do tenants have the upper hand when it comes to staying on top of their corporate lease agreement, but they can now benefit from advanced property viewing and touring. With innovative technologies like exterior drones, interior infrared drone cameras, and 3D modeling programs, which work similar to virtual reality, allowing 360 degree views and a real-life perspective of a property. In fact, there is even talk right now about smartphone-compatible immersive virtual reality technology applications that can place potential tenants inside the property for an up-close look. Only the future will tell!

Effectual Lease Negotiations

Technology has by far given corporate tenants an advantage in terms of lease negotiations. With just a click of a button, potential leasers can view and adjudicate virtually all market data for a property before even making a call to schedule an on-site tour. This gain can trigger tenants to make more impulsive selections and de-selections during the initial phase of the commercial office search. Additionally, this access to market data tells corporate tenants what the current market conditions are for such real estate, which in turn allow them to better evaluate leasing deals.

But this is not the only market research tech that gives commercial tenants the upper hand; there is also commercial real estate data exchange platforms available, which combines market research and social media data. This program lets tenants get additional information on rent and lease deals, free rent credits, and even tenant improvement allowances.

Are you looking for a qualified tenant improvement contractor to help remodel your office space into a place that best meets the overall objectives of your business? Contact BAF Corporation at 317-253-0531 for commercial tenant improvement remodeling and construction in Indianapolis, Indiana. We serve commercial and industrial clients all throughout the state.

How to Decide if You Can Afford to Remodel Your Business

Posted on March 4, 2022 by bafcorp20

When it comes time to seriously consider a commercial remodeling project, the key and communal question is, “can I afford a remodel right now?” If you are asking yourself whether or not you can fit a remodel into your current budget, you are not alone. For this reason, it is helpful for you to become more familiar on all that is required of you financially for your particular business remodeling goals. This will help you develop a rudimentary cost estimation, which will tell you if you can afford to remodel or not.

Continue reading to learn some considerations for achieving accurate cost foreseeability and budget analysis for a desired commercial business remodeling.

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Fitting a Remodel into Your Company’s Budget

Financing

When you are sweating the upfront investment of a commercial office or business remodel, don’t. Many commercial contracting companies are willing to offer flexible financing packages and incentives that help business owners fit a remodel into the budget and ultimately, add value to their property. Whether interior or exterior, commercial construction financing can be the answer to your business remodel or renovation concerns. Take note that some commercial general contractors do not offer financing options. But there are still other types of financing options that may be available to you.

Loans and Refinancing

Banks are eager to help business owners succeed. Many will agree to provide a business equity loan for commercial remodeling purposes, especially if your business already has good credit and credit history. And don’t forget about property owner equity lines of credit, business equity loans, second mortgages, and even commercial contractor loans.

Talk to your banker to learn which, if any, loan options you qualify for, or your options for refinancing your business’s credit agreement. They will be able to examine your financial portfolio and make full-informed recommendations with your best interests in mind. You may even want to consider a separate company for a business equity loan or lines of credit.

Tenant Improvement Allowances

Tenant remodels and leasehold improvements are much different from conventional commercial construction projects since they are intended to be an investment for a business owner. Tenant improvement (TI) allowances are sums of money made available to tenants by the landlord to cover some of the cost of needed remodeling work. Such allowances are usually stated on a per-square-foot basis, and most common for new spaces since more renovations are needed to finish the project. Check with your commercial management company or landlord to see if you have TI benefits.

Seek Out Professional Advice From a Commercial General Contractor

Talk to an experienced commercial construction company in Indiana to determine how to plan and organize your remodeling budget. An Indianapolis commercial general contracting team will be able to help you find affordable alternatives and cost-cutting advice that will get you the upgrade your business needs!

Are you looking for superior commercial remodeling in Indy, but you are not sure where to begin? Contact BAF Corporation at 317-253-0531 for superior commercial general contracting services in Indianapolis, Indiana. We work with clients all throughout the state.

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Who Pays For a Commercial Interior Build-Out?

Posted on November 2, 2021 by bafcorp20

Are you preparing to start a new business and need commercial space? Or are you a current business owner looking to relocate your company? Either way, you will likely be in need of a commercial interior build out. After all, commercial space doesn’t come ready and equipped to support your business’s specific operational needs.

Continue below to learn what you need to know about interior build out tenant improvements, including a financial responsibility breakdown that explains who pays for what.

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What is a Commercial Interior Build Out?

Commercial interior build-outs are also referred to in the industry as tenant impr ovements (TI) or commercial leasehold improvements. When you are on the market for a new commercial space, it is very rare to find one that meets all of your needs. From interior design and structure to power fittings, mechanical systems, and more, the majority of commercial spaces require some extent of renovation to personalize the space for the new commercial tenant. This type of commercial renovation is known as an interior build out.

Financial Responsibility Analysis

When it comes to commercial interior build-outs, you might be wondering if the landlord is financially responsible. Since there are many ways for a commercial tenant and landlord to delegate financial responsibility between them in the case of TI improvements, the answer to this inquiry varies depending on many factors.

Here are some possible scenarios on how a commercial interior build-out is financially covered:

If the landlord believes that the new tenant will be a significant asset and bring in more value than other potential tenants, they may cover the entire cost of the interior build out. They may do so by paying the Indiana commercial general contracting company directly or reimbursing the tenant at the completion of the project. Most often, tenants are reimbursed. This protects the landlord from a tenant who changes their mind after the renovations are done.

In another possible scenario, the landlord and tenant might decide to share the leasehold improvement costs a specified ratio. There are a few ways they do this. A landlord can include a tenant improvement allowance in the commercial lease based on square footage, and any renovation costs that exceed that allowance are the tenant’s responsibility. Or the landlord might offer a reduced rent fee or free rent for a specified period of time. These are referred to as rent-concessions.

Are you looking for a qualified and experienced commercial general contractor to deliver an exceptional interior build out within your TI allowance or budget? Contact BAF Corporation at 317-253-0531 for superior commercial remodeling and tenant improvements in Indianapolis, Indiana. We serve clients all throughout the state. Request information or schedule a bid, today.

How to Avoid Leasing to Bad Commercial Tenants

Posted on October 19, 2021 by bafcorp20

Halloween is certainly the time of year for nightmares, but your commercial tenants don’t have to contribute to the seasonal fright. As a commercial real estate owner or property management company, you are bound to be confronted with unqualified applicants. But if you want to avoid leasing to unreliable commercial tenants who have misrepresented themselves on their documents, is important to incorporate certain methodologies into your commercial leasing application process.

Continue reading for some tips that can help you avoid nightmare commercial tenants, plus where to find Central Indiana tenant improvement construction services that will improve your business’s overall success.

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Watch Out for Commercial Tenant Fraud

Unfortunately, commercial tenant fraud is all too common. Commercial tenants who commit tenant fraud misrepresent their qualifications or forge documents to present themselves as a qualified applicant for space, such as a retail store, office, or studio. After being approved for the lease, fraudulent commercial tenants often skip out on rent, damage the property, misuse the commercial space, or pose a plethora of tenant challenges and commercial landlord nightmares.

In order to deter commercial tenant fraud and application falsifications, you need to learn how to detect such fraud early on in the leasing and application process. Here are some tips that can help you avoid leasing to a nightmare commercial tenant, while keeping your commercial rental property business profitable:

Do Not Offer Online Application

It is not recommended to use an online application process for commercial leasing, even if you use a third-party platform. Many business application management websites say they will bring in all sorts of qualified commercial tenant applications, but their algorithms are basic and not comprehensive enough to weed out intentional fraud. When it comes to commercial leasing, it is best to always incorporate an in-person application and interview process to ensure that you are leasing to the right tenant.

Do Not Accept Incomplete Applications

There is not much to be said here. If you receive any commercial lease applications that are not filled out completely, shred them without giving them a second thought. An incomplete application is often a telltale sign of commercial tenant fraud. In most cases, applicants fail to complete the application because they are intentionally omitting information to avoid being investigated or denied tenancy.

Always Perform Credit and Reference Checks

Your commercial building or multi-housing property is an important investment that should only be entrusted to those who are dependable and qualified. For this reason, it is important to always perform credit checks and reference checks on all commercial tenant applications. It is common for commercial property owners to ignore references, but this is not a mistake you want to make. References are often more telling than a credit or income check, so be sure you do not skip this step during the commercial tenant screening process.

Advertise Background Checking

It is important to let all of your commercial applicants know that there will be a comprehensive background check during the application process. Advertise this information in the literature that advertises your commercial space openings. This way, tenants know they cannot hide anything or present themselves in a misleading way.

Advertise a Fraud Warning and Declaration

Along with advertising that a background check will be performed on each applicant, it is also important to advertise a fraud warning. A fraud warning will let potential applicants know that there are serious legal penalties and consequences for cheating or misleading their qualifications on their commercial leasing application. This is a great way to thwart commercial tenant fraud. Along with the fraud warning, it is important to include a declaration on the application. A declaration is a statement placed above the signatures of the applicants confirming that all information is accurate to their knowledge.

Require Supplemental Documentation

When you are getting proof of a commercial tenant’s income, it is important to also require supplemental documentation. Ask for more than one type of documentation to prove income when screening a potential commercial tenant.

Verify Identity With a Valid Photo ID

As a commercial building owner or property management company, you want to be sure that you are leasing to the person who is actually filling out the application. It is important to verify a person’s identity by checking their photo ID, or any other authorized identification documents, such as United States passport or military ID. Online applications present all sorts of opportunities for tenants to fraudulently upload their identity or use another person’s identity.

Are you looking for a qualified construction company to perform tenant improvement work to your commercial property? Contact BAF Corporation at 317-253-0531 for professional tenant improvements and remodels in Indianapolis, Indiana. We serve all corporate, commercial, and industrial industries in Central Indiana.

How to Make the Most of Your Tenant Improvement Allowance

Posted on August 20, 2021 by bafcorp20

When a commercial tenant leases a new office space, it may not be exactly what they envisioned for their business. In fact, this happens quite a bit. For this reason, it is strongly encouraged to ensure that there is some sort of tenant improvement allowance in your commercial lease before making a final commitment. A TI allowance will finance any strategic or aesthetic renovations to improve on the function and overall layout of your office.

If you have been granted a tenant improvement allowance, but it isn’t what you expected, there are some ways you can stretch it out. Continue reading for some tips on how to make the most of your tenant agreement allowance, and who to trust in central Indiana for superior TI commercial construction work.

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Be a Part of the Process

When discussing your tenant improvement allowance with your landlord or appointed commercial construction company, be sure to negotiate your role in the process. It is important that you remain involved in the entire tenant improvement construction process to ensure that your allowance is being used efficiently. Maintain a role in bid comparisons, contractor selections, construction supervision, and anywhere else that you feel comfortable in order to mitigate additional or unnecessary expenses.

Prioritize All Square Footage

Your commercial office space’s square footage goes wall-to-wall, but your cubic square footage goes from floor-to-ceiling. It is important to use all of your square footage options efficiently and is much as possible. Doing this can help make the most of your tenant improvement allowance. More importantly, your landlord may insist that your tenant improvement allowance applies to only the usable square footage in your office space, but it is actually based on all rentable office space, including areas in your building that are shared with other tenants.

Reuse Materials Efficiently

Before spending even one cent of your TI allowance, first take a look at your overall office space and consider what can be reused after your renovation. There are many types of building features and materials that you may not have to replace, or can be reused without jeopardizing their integrity, such as granite countertops, mirrors, plumbing fixtures, floors, doors, and more. For instance, rather than replacing the hardwood floors in your office space, consider having them refinished or polished instead, which is much cheaper and renders a beautiful outcome.

Discover What’s Hidden

Just like reusing materials to your advantage, it is also wise to take a look underneath some things to see if there is a way to cut back on costs. For instance, underneath that old carpeting could be original hardwood floors. These floors can be restored and re-polished, as mentioned earlier, which is much cheaper than replacing the flooring altogether. In another example, you can remove acoustic tiles from your ceiling to reveal an industrial ceiling, which poses several aesthetic benefits and costs much less than replacing these materials.

Are you ready to get started on your Indiana tenant improvement project, but looking for the right commercial construction company to work with? Contact BAF Corporation at 317-253-0531 for qualified and reputable tenant improvements and remodels in Indianapolis, Indiana. We serve clients all throughout the state.

You Should Also Read:

Who Pays for the Cost of the Tenant Improvements?
4 Tip for Planning a Tenant Occupied Building Renovation
General Tenant Improvements for Commercial Properties

Are All Tenant Improvement Allowances the Same?

Posted on April 5, 2021 by bafcorp20

It is a common misconception that all tenant improvement allowances mean the same thing. If you hear $35 per square foot, that does not mean that your final cost will be exactly that. What you end up spending on your tenant improvement overall is the real number. Continue reading to learn more about TI allowances, including how they can differ in value depending on certain factors.

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TI Allowance May Vary Depending On Your Needs and Preferences

Unless you are granted a flat tenant improvement allowance, which is when the landlord agrees to build out your TI project at no cost to you, there are some additional expenditures you might incur when everything is said and done. Are you planning for a dark shell or vanilla shell turnout? Are you open to reusing and repurposing existing materials? Do you envision an open or closed floor plan? Does your commercial building provide an amenity package for things like restrooms, lockers, food, or common areas? All of these factors can influence the value of your tenant improvement allowance.

Dark Shells Versus Vanilla Shells

When you are remodeling a tenant occupied commercial space, the most basic options you will have to choose from are dark or grey shell turnout, or vanilla shell turnout. A vanilla shell TI package generally delivers your basic, smooth aesthetic. This includes drywalling of all demising walls (partition walls that separate one tenant-occupied space from another, or from a building’s common areas), ceiling, lighting, a number of electrical outlets, essential plumbing, HVAC work, and in some cases, bathrooms. A grey or dark shell TI construction remodel will look a lot different, mostly because they only include the construction of electrician and plumbing stubs, and only on the demising walls of the space.

Reusing Existing Materials to Cut Costs

When you are remodeling a tenant-occupied space, you can almost always expect to incur demolition costs. But in some cases, existing materials that are in good condition can be reused or repurposed in the new space, and still done so up to commercial building codes. Materials like plumbing, metal framing, ductwork, lighting fixtures, and even interior doors can all be reused, and therefore, cut your TI costs.

Building Amenity Packages

Adding restrooms, food courts, kitchens, and break areas to a tenant improvement project is a big expense. If your building comes with an amenity package, such as shared restrooms, cafeterias, break areas, and similar public or communal facilities, you can potential lower your TI build-out expenses, or even allocate the budget towards something else in your TI project.

Are you interested in learning how you can meet all of your business objectives with a successful tenant improvement project? Contact BAF Corporation at 317-253-0531 to learn how we deliver organized and professional tenant improvement remodels in Indianapolis, Indiana.

You Should Also Read:

4 Tip for Planning a Tenant Occupied Building Renovation
Who Pays for the Cost of the Tenant Improvements?
6 Building Features That Corporate Tenants are Looking For