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

Indianapolis Commercial General Contracting and Design Build Services — Contact Us Today 317-253-0531

How to Increase Rental Property Income With Commercial Renovation

Posted on July 16, 2021 by bafcorp20

Your rental property is meant for one thing: income. Otherwise, you would just sell it or live in it! But as a rental property owner, you might want to consider a removal or renovation to increase your earnings. Worried this might be out of your budget? You’ll be relieved to discover that there are plenty of ways to execute an update or renovation economically.

Continue reading to learn some advice on how to increase rental property income through smart renovating, and who to call for commercial general contracting in Indianapolis.

Indiana Commercial General Contracting 317-253-0531

Improve Your Bottom Line Through Smart Commercial Remodeling

Repairs and Replacements

Start by looking through your property. Do you see anything that is on its last leg, already broken, or exceedingly outdated? If so, you should fix or replace whatever needs attention. This includes electrical systems, appliances, plumbing, molding, baseboards, paint, doors, windows, locks, lights, patios, porches, decks, and anything else you can lay your eyes or hands on. This step alone can increase your rental income, instantly.

Enhanced Amenities

After making all necessary repairs and replacements, consider adding or updating some existing amenities. For instance, if the current shower head causes poor water pressure, update it to a more modern version. Update other simple plumbing fixtures too, like faucets and even cabinet handles and doorknobs. Other areas to update include light fixtures, lighting, and mirrors.

Larger Renovations

Next, consider the condition of your property. Does it need new flooring? Perhaps the carpets need replaced? Does it have outdated counters or bathrooms? Is the kitchen old or closed-concept? How’s the wall paint? There are likely several areas of improvement that can be conquered through renovations. Many will instantly update and increase the value of your rental property. Renovations can also include door and window replacement, conversions, space additions, and more.

Health and Safety

Consider renovating to incorporate some innovative modifications that will reduce the spread of germs and bacteria. Some current, popular options include copper surfaces, automatic doors, and other kinds of touch-free options like hand soap dispensers, automatic hand sanitizer dispensers, ionized air conditioning technology, recycling shoots and compactors, and even solar energy applications.

Are you interested in commercial remodeling services for your office or business in Indiana? Contact BAF Corporation at 317-253-0531 for Indianapolis Indiana commercial general contracting construction you can trust. We serve Indianapolis, and all of Central Indiana.

You Should Also Read:

General Tenant Improvements for Commercial Properties
6 Building Features That Corporate Tenants are Looking For
4 Tip for Planning a Tenant Occupied Building Renovation

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

How to Move Your Office From the City to the Suburbs

Posted on March 1, 2021 by bafcorp20

Like many business owners and commercial real estate proprietors, the COVID-19 pandemic has likely changed the way you do business, and greatly impacted your overhead operating costs. For this reason, many businesses are moving their big city and metro office locations to more community-based districts for lower rental rates and generous lease agreements. Not only is this saving business owners money, but it is also improving their overall budget efficiency. If your office or company is currently located in an expensive city location, you too might want to consider moving to the suburbs to help you and your staff better accommodate to the evolving office platform we have experienced this past year.

Continue reading for some tips that will help you better transition from a big city office location to a suburban location.

Indianapolis IN Office Remodeling Contractors 317-253-0531

Get Creative With Your Office Options

You don’t have to look for bland, strictly-leased office buildings if you want to move from the city to the suburbs. Get creative and think outside the box! For instance, due to the pandemic, there are many vacancies and retail spaces available for reduced rent at places like shopping malls, business plazas, and strip malls. Not only are these locations easy to renovate to meet your business’s needs, but they are also cheaper than big city rentals, and more conveniently located. Staff, guests, clients, or customers can enjoy the easy highway connections and commutes, nearby shopping, restaurants, and local services.

Hire a Tenant Improvement Contractor

Moving office locations involves a lot of steps, and even more consideration. Furthermore, the commercial real estate market can be complex and confusing. So, if you want to ensure you get a fair deal that will meet the current and future needs of your business, it is vital to hire a commercial general contracting company who specializes in tenant improvements and remodels. They have the acumen and professional resources to efficiently navigate brokerages, insurance, securities, lease agreements, zoning, permitting, space planning, and all other complexities involved in moving into a new office location.

Make the Switch Easy for Your Employees

Your staff will appreciate the effort you make to relieve some of the stress and labor involved in transitioning into a new office location. First, provide as much information as possible, and as soon as possible, in clear and precise ways, such as comprehensive packets, meetings, emails, flyers, and more. The more they know, the less fear and uncertainty they feel, making the move much easier for them. Also provide them with thorough information on the local demographics, public transportation, interstates and highway connections, local shopping centers, restaurants, dry cleaners, and more.

Know Your Codes and Zoning Requirements

Get to know your local building and city codes, including fire codes, construction permit requirements, zoning laws, and all other relevant regulations. Your commercial TI contractor can help you with this. So really, all you have to do is study the literature they provide, as they will be able to gather all relevant and important laws and information pertaining to your new location.

Are you looking for a TI contractor for help with office and commercial use construction in Indianapolis, Indiana? Contact BAF Corporation at 317-253-0531 to learn your options for relocating and/or remodeling a new office space.

You Might Also Read:

General Tenant Improvements for Commercial Properties
Advice for Selecting a New Office Location
Who Pays for the Cost of the Tenant Improvements?

Common Operating Costs as a Commercial Tenant

Posted on October 12, 2020 by bafcorp20

Whether you are preparing to perform a routine audit of your commercial lease portfolio, or considering a list of potential office spaces for rent, rent is not the only operating cost to review. Aside from rent, there are many other types of operating costs for a rented commercial space. Continue reading to learn some of the most common operating costs you can expect as a commercial tenant, as well as, where to get trusted advice regarding tenant improvements.

Indianapolis Tenant Improvement (TI) Contractors — Tenant Improvements and Office Renovations in Indianapolis 317-253-0531

The Cost of Rent

You can certainly expect to pay rent for your commercial space, but also expect this expense to be the bulk of your total operating costs. Review your base rent cost, then follow up by reviewing how that cost might evolve or increase overtime. Be prepared to learn that your lease allows the commercial landlord to increase rent at their discretion, as many commercial leases do. However, in such cases, the rate at which the rent will increase, and by how much, is usually defined in the lease agreement from the start. There are likely set caps on how high the rent can get. Variable indicators, like the Consumer Price Index, might also influence a landlord’s method of rent changes.

Property Taxes

Taxes are an obvious cost for a commercial tenant, and for anyone working in the country for that matter. In your commercial agreement, the portion of property taxes paid might be with a single, double, or triple net lease. Furthermore, property tax reassessments can result in sudden and unexpected operating cost increases. Talk to your landlord when reviewing your lease, and ask whether or not the property has been assessed recently, or if any assessment is in the books.

Insurance Coverage

General liability insurance might also be an obvious operating expense for a commercial tenant, but there is more to consider when reviewing your lease. For instance, if you have a double or triple net lease, you must pay for a portion of the landlord’s property insurance. When renegotiating your liability insurance premiums, be sure you understand that your space’s location will have an impact.

Utility Costs

Like any other modern building or space, it will require the use of electricity, running water, heating and air conditioning, and many other modern utilities. So, you can expect to pay utility costs on a routine basis, unless you have a gross or full-service lease. Talk to your trusted Indianapolis commercial general contracting company to learn how you can keep utility costs down by incorporating more sustainable infrastructure, operations, and technology.

Miscellaneous Fees

Your landlord might require their commercial tenants to be responsible for paying certain miscellaneous property fees, separate from rent and utilities. Some examples of such fees include parking fees, permits, property facility maintenance, exterior sign displays, a possibly even a hidden repayment of rent abatement. Also, some landlords will offer first months’ rent free, but then require that month’s rent to be repaid by the end of the year. Watch out for this too when reviewing your lease agreement.

General Maintenance and Upkeep

Commercial tenants are generally responsible for maintaining the property on their own dime. This commonly includes expenses like facility maintenance, custodial services, indoor plant care, garbage and recycling, minor repairs, landscaping service, snow removal, and security. Be sure to look for these fees in your commercial lease, and discuss who is responsible for paying what when the time comes. Also be sure to discuss your TI allowance with your landlord, and perhaps plan a needed tenant improvements or remodels for your commercial space or building.

Office Renovations and TI Improvements in Indianapolis, Indiana

Contact BAF Corporation at 317-253-0531 for trusted office and commercial-use construction services in Indianapolis, Indiana and its surrounding locations. Our skilled and experienced commercial general contractors are certified specialists in tenant improvements, office remodels, and commercial-use construction services. Whether you are launching, expanding, renovating, or relocating an office or professional space, our commercial construction and building contractors have the qualified expertise, first-class resources, and latest technologies to support your business’s objectives and generate long-term value. We serve all corporate, commercial, and industrial.

Frequently Asked Questions About Commercial Interior Build Outs

Posted on August 27, 2020 by bafcorp20

Business and facility owners experience change as the years progress and the economy evolves. After so much time, many find themselves in need of a brick and mortar, new location, or new look. Either way, in comes the commercial interior build-out. Continue reading to review some of the most frequently asked questions about interior build-outs, including how they can benefit your business’s overall success and where to get started with a trusted bid in Indianapolis.

Indianapolis Commercial Leaseholder Improvement Contractors 317-253-0531

Commercial Interior Build-Out FAQS

What is a Commercial Interior Build-Out?

A commercial interior build-out can mislead business owners since they are often referred to as commercial tenant improvements (TI’s) or leaseholder improvements. Commercial tenant improvements and remodels are generally needed in almost all cases of a business needing new space since most commercial offices and units are not set up to meet the exact needs of a particular company. In fact, this is exactly what a commercial interior build-out is: a commercial construction remodel to an existing space to customize it structurally and culturally to the business’s unique needs.

Do Tenants or Landlords Pay for a Commercial Interior Build Out?

There is always some confusion with who pays for what when it comes to commercial tenant improvements and remodels. Generally, the landlord and tenant can choose how they want to arrange the financial liability for a commercial interior build-out. Among the possible arrangements, examples include:

✒ Rent Concessions – Landlord agrees to reduced rent, or no rent at all, for a select period of time, to cover the total cost of the project.

✒ Built-in Cost – Landlord believes the tenant will be an improvement to their building or facility, and decides to cover the entire cost of the interior build out.

✒ Reimbursement – If the landlord is paying for it all, they will either have the tenants pay and then reimburse them, or divide the cost of the project and include it in the total cost of the lease. This is referred to as a build-to-suit lease agreement.

✒ Square Footage Costs – Landlord agrees to pay to remodel a certain square footage, and the tenant covers the rest of the cost of the project.

Will My Business Benefit from an Interior Build Out?

There are many advantages to doing to a commercial interior build-out, whether you are an existing business that needs a facelift or modern technology applications, or a business just started out and in need of commercial space. A custom interior finish-out not only updates your business, making its operations more efficient and cost-effective, it increases staff morale and productivity. Accordingly, all of these effects increase your business’s revenue overtime.

How Do I Get a Bid for a Commercial Interior Build Out in Indianapolis?

Contact BAF Corporation at 317-253-0531 for superior commercial construction general contracting and construction management in Indianapolis, Indiana. Our skilled and experienced commercial general contractors can help you design and build your interior build out, and offer a simple, streamlined process that meets all business objectives. 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.

Who Pays for the Cost of the Tenant Improvements?

Posted on June 12, 2020 by bafcorp20

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. With that being said, when it comes down to who pays for what in a tenant improvement project, the answer can be more complex than you would expect.

Continue reading to learn more about who pays for the cost of tenant improvement (TI) projects, as well as, where to get trusted TI construction work near you.

TI Cost Planning

Generally, TI costs are considered by the landlord of the property when they agree to a rental rate among tenants. Most often, a portion of a tenant’s monthly rent will reimburse a landlord for the cost of TI construction work, however, this is not always the case. In the case of a turn-key tenant improvement project, it is necessary for the landlord to know specific details on the work being performed, including which areas or spaces are being remodeled. Another reason why a turn-key project requires upfront information for a landlord is so that they know how much the costs are going to be for all the work.

TI Allowances and Lease Signings

At the time of the lease signing, both the tenant and landlord should come to an agreement regarding TI allowances. Tenant improvement 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. However, the amount of money provided by a landlord for TI work varies greatly, and depends on a wide range of factors, such as the age or current condition of the space, duration and value of a tenant’s lease agreement, market demand, and more.

Furthermore, if the total cost of a tenant improvement project exceeds the original, agreed-up allowance, the tenant is responsible for paying the remainder. Although rare, it is possible for the landlord to take on the excess costs themselves, but they will only do so to a certain capped amount, plus increase the tenant’s rent accordingly.

If a tenant decides to take on the TI work themselves, they risk being subjected to delays and unanticipated setbacks, which can hurt them financially since their rent will still be due on the date in the lease contract, regardless if they can move into the space yet or not. In this case, the tenant takes on all of the risk, and might have to pay more for construction, while also paying rent at the same time, without any revenue coming in.

To avoid this hassle, always hire a professional commercial construction company that specializes in tenant improvement work. You see, commercial building teams use a client-centered partnership approach to accurately understand our client’s business objectives and tenant’s needs, and deliver results that maximize their profitability by driving greater value.

Indianapolis Tenant Improvement Construction Contractors

Contact BAF Corporation at 317-253-0531 for trusted tenant improvement construction 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.

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.

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.

Space Planning and Tenant Improvements 317-253-0531

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.