What to Expect When Planning a Commercial Tenant Finish

Posted on April 23, 2024 by bafcorp20

In the realm of commercial real estate, the canvas of a building is transformed not just by the architects and construction crews who erect the structure but also by the businesses and owners who, in the pursuit of their unique vision, tailor and refine the interior environment. For many business owners and landlords, the process of finalizing the interior of a commercial space, known as tenant finishing or tenant improvement, is a crucial step towards operational readiness and brand expression. It’s more than just aesthetics—it’s about creating a functional, attractive, and, in many cases, a legally compliant space for success.

In this comprehensive guide, we’ll take a deep dive into the world of commercial tenant finish, exploring the process from start to finish, identifying important considerations, and shining a spotlight on design trends and construction technology that are redefining the industry.

Call 317-253-0531 for Tenant Finish Services in Indianapolis Indiana

What is a Commercial Tenant Finish?

Before businesses can move in and start operations, the space typically undergoes a series of modifications to meet the specific needs of the tenant. This process, known as tenant finish, encompasses everything from the initial design to the final touch-ups and often involves a close partnership between the tenant, the landlord, and various construction professionals.

Tenant finish out (TFO), also known as tenant improvements (TIs) or leasehold improvements, refers to the custom interior work a tenant does to their rental space to make it fit for business. This may include structural changes, adding or removing walls, electrical or plumbing work, HVAC customization, and finishing surfaces with flooring, painting, and other design elements. TFO is a significant factor in a tenant’s overall business investment, and a well-planned finish out can directly impact their brand, customer experience, and employee morale.

The Tenant Finish Process

A typical tenant finish project can be broken down into several key phases. From the initial conversations to the final walk-through, each step is critical to the success of the project and the satisfaction of the tenant.

1. Planning and Design

Long before construction begins, the tenant and their design team work to conceptualize the space. This involves understanding the tenant’s needs, developing a design that meets those needs, and creating the necessary construction documents.

Establishing a Vision

The early stages of tenant finish are about imagining the space. Business owners work with designers to translate their brand into a three-dimensional experience that will resonate with customers and employees. Lighting, color schemes, and flow are carefully considered to create an environment that’s both functional and inviting.

Design and Documentation

Once the vision is established, it’s translated into technical drawings and specifications. These documents will serve as the roadmap for the construction team, detailing the materials to be used, quality standards, and the scope of work.

2. Budgeting and Permitting

Translating a design into reality involves more than just securing the necessary financial resources. It also means navigating the legal and regulatory landscape to ensure that the finished space is safe and code compliant.

Tenant Finish Allowance

A tenant finish allowance is a set amount of money that a landlord is willing to contribute towards the cost of improvements. Understanding the terms of the TI allowance is crucial for tenants to avoid unexpected costs and for landlords to protect their investment.

The Permit Process

Every commercial project must adhere to local building codes. This requires obtaining the appropriate permits, which can be a complex and time-consuming process. Engaging a construction company with experience in tenant finish projects is essential for a smooth permitting process.

3. Construction and Execution

With permits in hand and the budget approved, the physical work can begin. This stage is all about coordination and communication as multiple trades come together to bring the design to life.

Managing the Build

Effective project management is key to keeping the tenant finish on schedule and within budget. This involves regular site meetings, progress reports, and quick decision-making to address any unforeseen issues that may arise.

Quality Control and Inspections

Throughout construction, quality control measures are implemented to ensure that the finished space will meet the tenant’s needs and the landlord’s expectations. Inspections at various stages of the project help identify and resolve potential problems early.

4. Close-Out and Operation

When construction is complete, the space is turned over to the tenant. However, this doesn’t mark the end of the tenant finish process. There are still several critical steps to be taken to ensure a successful handover.

Final Walk-Through

A comprehensive walk-through of the finished space is conducted to identify any punch list items that require attention. These are typically small, finishing details that need to be rectified before the tenant can occupy the space.

Ongoing Support

Even after the close-out, a good construction company will provide ongoing support to address any warranty work or to assist with the training of maintenance staff on the operation of new systems.

Key Considerations Before Starting a Tenant Finish Project

Engaging in a tenant finish project is a significant undertaking, one that carries with it various considerations that can mean the difference between a smooth, successful process and a costly, stressful one.

The Importance of a Professional Team

Hiring the right professionals, from designers and architects to contractors and project managers, is the first step to ensuring a successful project. Fortunately, you can hire just one full-service commercial construction company that delivers all these services. Experience in commercial tenant finishes is a must, as the unique requirements of these projects demand a specific skill set and understanding of the commercial leasing process.

Understanding Tenant Finish Allowances

Negotiating a fair tenant finish allowance can be instrumental in managing costs. However, it’s essential that tenants have a clear understanding of what is and isn’t covered by the allowance, as well as the approval process for additional funds, if needed.

Complying with Legal and Safety Requirements

Compliance with building codes and regulations is non-negotiable. Tenants and landlords must be aware of their legal obligations and ensure that the work performed meets or exceeds these standards to avoid fines or delays in opening for business.

Recognizing the Role of Timing

Time is money, and this is particularly true for tenant finishes. Delays in the design or construction process can have a significant impact on a business’s launch or relocation timeline, potentially leading to loss of revenue. It’s important to build in contingency plans to manage unforeseen delays.

Design Trends in Commercial Tenant Finish

Like any segment of the design industry, commercial tenant finishes are influenced by trends that reflect broader cultural and societal shifts. Keeping abreast of these trends can help businesses stay competitive and create a lasting impact with their spaces.

Flexibility in Design

With the rise of collaborative workspaces and remote work, there’s a growing demand for flexibility in the layout and use of commercial spaces. Design elements that can be easily reconfigured or repurposed to serve different needs over time are becoming increasingly popular.

Sustainable and Green Building Practices

The growing awareness of environmental issues has pushed sustainability to the forefront of design considerations. Businesses are seeking to reduce their carbon footprint through the use of Eco-friendly materials and energy-efficient building systems.

Technology-Integrated Spaces

The integration of technology in business operations is mirrored in the design of commercial spaces. From smart lighting and HVAC systems to spaces designed for video conferencing and collaboration, technology is shaping the way we use and interact with our work environments.

The Role of Technology in Tenant Finish Projects

Advances in technology are changing the way we approach construction and design. From project management software to sustainable building materials, the tech landscape within the commercial real estate sector is evolving rapidly.

Software Solutions for Enhanced Project Management

Sophisticated project management software solutions offer real-time collaboration, progress tracking, and the ability to anticipate and mitigate potential delays or cost overruns. These tools are becoming essential for keeping large projects on track and within budget.

Sustainable Materials and Construction Techniques

In response to the growing focus on sustainability, the industry is witnessing a shift towards the use of recycled, low-impact materials and more energy-efficient construction techniques. This not only benefits the environment but can also lead to cost savings and improved operational efficiency for tenants.

Virtual Reality and 3D Modeling

Virtual reality and 3D modeling technologies are revolutionizing the design phase of tenant finishes, allowing stakeholders to ‘walk through’ and experience the space before a single physical alteration is made. This not only aids in the visualization of the design but can also help prevent costly design changes later in the process.

Mistakes to Avoid in Tenant Finish Projects

Tenant finishes can be complex, and there are several common pitfalls that businesses should be aware of to ensure the success of their projects.

Underestimating the Importance of Pre-Planning: Rushing into the construction phase without proper planning can lead to design changes, scope creep, and increased costs. Taking the time to plan the project thoroughly in the early stages is crucial.

Not Communicating Expectations Clearly: Clear and open communication between all project stakeholders is vital. Misunderstandings or assumptions about design elements, timelines, or costs can lead to disputes and delays.

Failing to Have a Contingency Plan: Even the most carefully planned projects can be subject to unforeseen circumstances. Having a well-developed contingency plan can help mitigate the impact of these disruptions and keep the project on track.

Conclusion

Commercial tenant finishes require careful planning, a keen eye for design, and a thorough understanding of the construction process. By staying informed and engaging with experienced professionals, business owners and landlords can create spaces that elevate their brands, foster productivity, and provide a standout experience for employees and customers alike.

Feel like moving onto the next step? For additional information on commercial tenant finish projects or to explore how you can transform your commercial space into the perfect environment for your business, contact BAF Corporation at 317-253-0531 today. We look forward to supporting you in your commercial real estate endeavors.

Tenant Improvements: Enhancing Your Commercial Space

Posted on February 8, 2024 by bafcorp20

Tenant improvements (TIs) represent the transformative essence that can elevate a mundane commercial lease into a powerful, long-term branding and productivity opportunity. Whether you’re a tenant looking to make your space unique or a property manager aiming to improve your property’s appeal, the world of tenant improvements is vast and multifaceted.

In this comprehensive guide, we’re diving deep into the concept of TI, exploring every angle from the benefits it offers to the nitty-gritty details of execution. By the end, you’ll be equipped with the knowledge you need to initiate a tenant improvement project that will not only enhance your commercial space but also provide a slate of tangible advantages for your business.

Call 317-253-0531 for Tenant Improvement Construction in Indianapolis Indiana

Understanding Tenant Improvements

Before delving into the intricacies of tenant improvements, it’s crucial to understand what they are and why they matter. Tenant improvements, also known as leasehold improvements, are customizations to rental space to accommodate the needs of the tenant. This can span from simple fresh coats of paint and new carpets to complete remodeling, including the installation of specialized equipment.

Types of Tenant Improvements and Remodels

There is no one-size-fits-all when it comes to tenant improvements. The scope of these projects is as unique as the tenants themselves. Here are some common types:

Cosmetic Updates: The most basic improvements include the application of new finishes or fixtures, which can give a space a completely new look and feel without major structural changes.

Functional Modifications: These are upgrades that reconfigure the layout to better suit the operational flow of the tenant’s business.

Substantial Structural Changes: For tenants with unique or specialized spatial needs, the revamping of the property’s structural elements might be necessary.

Lease Agreements and Tenant Improvement Allowances

Often, tenant improvements are outlined and budgeted in the lease agreement as a tenant improvement allowance (TI allowance). This is a fixed amount of money provided by the landlord to the tenant for customization. If the cost of the improvements exceeds the allowance, the tenant is responsible for the difference.

Benefits for Commercial Tenants

For commercial tenants, undertaking a TI project can offer a wealth of benefits that go beyond aesthetics and comfort. Additional benefits of choosing to pursue a tenant remodel include:

Customization and Branding Opportunities – Tenant improvements allow businesses to create a space that mirrors their brand and values, contributing to a more professional and engaging environment for clients and employees alike.

Increased Employee Satisfaction and Productivity – A well-designed workspace can drive employee satisfaction and productivity. Elements such as natural lighting and ergonomic furniture can lead to a more comfortable work environment, fostering better performance and morale.

Cost Savings in the Long Run – Although there’s an initial investment, customizing a space to fit your exact needs can save money over time. It eliminates the need to retrofit standard spaces, which often involves additional change orders and expenses.

Benefits for Property Managers and Landlords

Property managers and landlords stand to gain from tenant improvements as well, such as:

Attracting and Retaining Quality Tenants – In a competitive market, a space that offers the freedom of customization can be the edge that attracts high-value, long-term tenants.

Higher Property Value and Rental Rates – Upgraded spaces command higher rental rates and can increase the overall value of the property.

Long-term Lease Agreements – When a tenant invests in their space, they are more inclined to sign longer leases, providing stability for both the tenant and the landlord.

Tenant Remodel Planning and Budgeting

Executing a successful tenant improvement project hinges on meticulous planning and accurate budgeting. Consider important elements, such as:

Assessing the Needs and Goals of the Tenant – It’s essential to start by understanding the specific requirements of the tenant’s business and their vision for the space.

Cost Estimation and Budget Allocation – An experienced contractor can provide a detailed estimate of the project cost. It’s important to allocate funds for unexpected expenses that may arise during the project.

Hiring Professionals and Obtaining Permits – To ensure the project is completed to code and on time, it’s vital to engage professionals and secure any necessary permits in advance.

Common Tenant Improvement Projects

The breadth of tenant improvement projects is vast, but there are common areas where customization often occurs, such as:

Interior Remodeling and Renovations – These projects can include anything from building new partition walls to breaking down existing ones to create an open-plan space.

HVAC and Electrical Upgrades – Modernizing these systems is often a priority to improve energy efficiency and align with the tenant’s specific equipment needs.

Accessibility Improvements – Making the space more accessible and accommodating for all visitors and employees is both a legal and ethical necessity.

Navigating Challenges of TI Construction Projects

While tenant improvements offer significant advantages, they are not without their challenges, such as:

Communication/Collaboration Between Tenants and Property Owners – Effective communication and collaboration are critical to ensure the tenant’s vision aligns with the property owner’s expectations and structural limitations.

Addressing Potential Disruptions and Inconveniences – Tenant improvements can sometimes cause disruptions to neighboring tenants or require planned service shutdowns. Planning these with everyone’s convenience in mind is paramount.

Compliance with Building Codes and Regulations – Staying on the right side of the law means researching and adhering to relevant building codes and regulations. Failure to do so can lead to costly delays and repercussions.

Conclusion

Tenant improvements are a powerful tool for commercial tenants, property managers, and landlords. They provide a unique opportunity to customize and enhance a space, create a more functional environment, and offer a multitude of benefits for all parties involved. Moreover, choosing the right partners for your tenant improvement project is essential. A qualified commercial construction company not only ensures the work is executed successfully but can also offer valuable insights and solutions throughout the process.

If you’re considering a tenant improvement project, this guide is your starting point. Next, contact BAF Corporation at 317-253-0531 to speak with a seasoned commercial construction contractor about planning your 2024 tenant improvements and remodels in Indianapolis, Indiana, today.

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.

What is White Box Commercial Real Estate Construction?

Posted on March 15, 2022 by bafcorp20

You know how realtors suggest removing or hiding all personal items from your residence before an open house? Some will even encourage home sellers to repaint in a more neutral color palate. Well, this real estate sales strategy is known as depersonalization, and it helps potential buyers visualize their own lives within the dwelling and ideally, feel motivated to make an offer. In the commercial real estate industry, such blank canvas benefits apply in a similar way. What’s referred to as white box real estate is a valuable tactic for filling up unoccupied commercial buildings and spaces with quality tenants.

As a commercial real estate developer or building owner in the same predicament, you would be wise to consider white box remodeling or construction. Continue reading to learn more about white box real estate construction, including which commercial remodeling company to trust for expert advice and craftsmanship.

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White Box Construction Finish

White box construction finish is also called vanilla shell or vanilla box construction finish. This type of construction finish is just that: a blank, white canvas ready for a new tenant to take over. It is a space that has been remodeled or constructed in a way that has it prepped for complete tenant improvement remodeling. The average commercial white box finish would be up to code, plus have all utilities set up, electrical work done, ceilings finished, walls finished and ready for painting, and base floor ready for preferred flooring. White box remodeling or construction also incorporates design details that prepare it for a potential build-out.

Common Finished Elements of a Vanilla Box:

▢ Roofing
▢ Walls
▢ Ceilings
▢ Windows and Doors
▢ Concrete Flooring
▢ HVAC
▢ Hot Water
▢ Electrical Work
▢ Standard Lighting
▢ Bathrooms/Drinking Fountain
▢ Fire Protection Systems
▢ Stairs
▢ Elevator

Considerations for a White Box Remodeling Job

If you are leaning towards white box construction or remodeling for your commercial building, it is important to discuss all terms and conditions of the job with your commercial general contracting company before any work commences. The classification of vanilla shell construction can vary among commercial contracting companies, so it is important to confirm the job expectations in clear and unambiguous detail.

Turnkey Tenant Improvement Construction

A white box construction finish certainly provides an opportunity for turnkey tenant improvements. This streamlined approach allows commercial tenants to customize the interior of their space in a way that optimizes their business’s daily operations, staff productivity, client satisfaction, and overall success. The secret to a successful white box construction or tenant remodeling job is to choose the right Indiana commercial general contracting company.

Are you looking for a qualified commercial construction company to help you with your white box real estate or tenant improvement needs? Contact BAF Corporation at 317-253-0531 for licensed and insured tenant improvements and remodels in Indianapolis, Indiana. We serve commercial and industrial clients all throughout Central Indiana.

What You Should Know About Signage Rights as a Commercial Tenant

Posted on November 8, 2021 by bafcorp20

Many in the industry would agree that branding is an essential, if not central, element to growing a successful business. One of the most effective and traditional methods of business branding is signage. Having the name and logo outside of your business is a valuable branding approach that influences potential consumers, plus retains the loyalty of your current clients.

But if you do not own your own building, your rights to signage may not be as clear cut as you would expect. As a commercial tenant interested in adding signage for your business, there are some important considerations you must keep in mind before signing a commercial lease or moving forward with signage procurement and installation.

Continue below to learn what you need to know about signage rights for commercial tenants.

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Commercial Tenant Signage Rights

If you are a new or potential commercial tenant, it is important to understand that signage rights are not guaranteed. There are some commercial landlords that do not permit signage on the outside of their building or marque, and others that only allow signage within strict design and color restrictions for the purpose of uniformity.

It is also common for commercial landlords to have preexisting agreements with other tenants that impose a restriction of some kind on new tenants’ rights to business signage. In some cases, it is not up to the commercial landlord at all, as local zoning laws can also prohibit signage, or the amount of signage on or around buildings.

Negotiating Business Signage With a Commercial Landlord

Because the rights and perimeters of business signage are more complex for commercial tenants, it is wise to always inquire about business signage before signing a commercial lease. As a commercial tenant, you may be able to negotiate your signage rights if the current lease does not offer what you are looking for.

If you are already in a commercial lease, you can wait until your lease is up for renewal, and then have signage rights added to the lease. It is vital to have your negotiated or amended signage rights spelled out in writing in your lease agreement.

Common Types of Business Signage Arrangements:

► Shared Building Signage

If a commercial building is shared by two tenants in equal ways, a landlord may agree to or permit a shared building signage system. With shared building signage, both commercial tenants can display their business signage on the building’s facade. This is a common signage arrangement in the commercial real estate industry.

► Exclusive Building Signage

In some cases, a commercial landlord will agree to give a tenant exclusive building signage rights. This means that commercial tenant is the only business displayed on the outside of the building. This signage arrangement is most common in commercial buildings that only have one tenant or space for one tenant.

► Exclusive Monument Signage

Many commercial buildings have monument signs on the outside of the parking lot or street. In such leases, it is common for landlords and tenants to adopt an exclusive monument signage arrangement. This would permit the tenant to display their business signage as a stand-alone sign or within the monument signage out front. This is most commonly reserved for key commercial tenants.

Are you looking for a trusted commercial general contractor to help you plan out your upcoming business move or redesign? 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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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.

Tenant Improvements and Remodeling Indiana 317-253-0531

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.

Indiana Tenant Improvement Commercial Construction 317-253-0531

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

How to Find a Qualified Tenant Improvement Contractor

Posted on April 21, 2020 by bafcorp20

As a commercial building owner who wishes to entice long-term tenants to enter into or remain in a lease with you, it is wise to offer a tenant improvement package. To confer such an opportunity to important tenants would mean to protect your overall business objectives and long-term investment goals. But in order to be successful with a tenant improvement (TI) project, you must ensure you enlist the right commercial construction contractors.

Continue below to learn how to find a qualified tenant improvement contractor to help you plan, design, and execute your TI needs.

Indianapolis Commercial TI Contractors 317-253-0531

Start With Licensing and Insurance

The first set of credentials to look for when hiring a commercial contractor for tenant improvement services are licensing and insurance. Commercial construction is a serious undertaking that requires the utmost proficiency and security. A company with an active and good-standing operating license, as well as full-coverage insurance, is a company that can be considered worthy of hiring.

Move On To Qualifications

Beyond licenses and insurance coverage, a TI contractor should retain extensive training and knowledge of the construction field, coupled with years of hands-on commercial construction experience. Look for a licensed and qualified tenant improvement contracting team that has been working in the industry for decades, and can offer an actual portfolio of successful projects.

Furthermore, narrow your search by choosing a TI contractor who has actual experience in the type of business you own or are opening up. For example, if you are a leaseholder to a group of tenants in the medical care industry, you would be wise to select a contractor who has experience specifically in medical building construction and tenant improvements.

Consider Value and Innovation

When it comes to long-term tenants, you want your renovations to stand the test of time. To achieve this, your tenant improvement projects will require higher quality building materials, which can only be offered by an accomplished and reputable commercial construction company. When interviewing potential TI contracting teams, be sure to consider the value they offer in terms of their resources, equipment, and building materials. Furthermore, be sure they can offer current technologies and innovative solutions for your growing business objectives.

Central Indiana Tenant Improvement Contractors You Can Trust

Contact BAF Corporation at 317-253-0531 for commercial TI construction and planning in Indianapolis, Indiana and its surrounding Central Indiana locations. Our commercial construction teams use a client-centered partnership approach to accurately understand our client’s business objectives and tenant’s needs, and deliver results that maximize profitability by driving greater value. When you choose BAF Corporation for commercial tenant improvement planning and construction, you can expect competitive pricing, value engineering, efficient project completion, and turnkey service. Get started with an over-the-phone consultation, today.