Tenant build outs allow tenants to finish a raw building space, in a manner that suits their needs. By the end of the buildout project, the space is usually functional to the tenant.
For any buildout project, the tenant must consult an architect to assist them in designing the place. After that, they will need to engage contractors, electricians, plumbers, and other service providers in order to complete the project.
With this, comes one question, what are the pros and cons of tenant buildout?
An opportunity to enhance the image of your business
Tenant build-outs are some of the best ways to improve the image of a business, compared to occupying a prebuilt space. Since you will be in charge of the entire project, you will be able to design the space in a manner that elevates the image of your business.
This is important, as it will make your business stand out from the rest of the competition. Today, most clients get their first impressions based on what they see when they enter your premises. Therefore, having a modern business place is an indication that you are professional, and you are serious about your business. This helps in attracting clients and making them feel more comfortable when working with you.
According to tenant build-out contractors, AFS General Contracting, this one of the major benefits that you get to enjoy from a tenant buildout. Although today’s landlords and property managers are trying to be creative when developing their properties, their creativity cannot match the benefits you get to enjoy when you redesign and build your own space. Also, some company policies demand the customization of certain architectural elements, IT infrastructure, as well as brand integration—this is something you get to enjoy from a tenant build-out.
Well, some people have some reservations when it comes to quality in tenant build-out. But, did you know that tenant build-outs handover quality to the hands of the tenants? When developing a property, most landlords will make the space look good to attract tenants.
However, most landlords and property managers will do little work on the space, and then design it in a manner that entices new tenants. The challenge with this is that the landlords end up compromising on the quality of the space.
However, when a tenant supervises the build-out, they make sure that every aspect of the project fits their demand. Moreover, they have the option and freedom to control the quality of the project—from the start to the end since they are in charge of everything.
Allows businesses to attract and keep employees
The customization benefit provided by tenant build-out allows businesses to have modern and up-to-date workspaces. If you are in a certain profession like medical and IT, you know how it’s a challenge to attract and retain employees. However, with a modern workplace, you can easily attract professionals to work with you.
Today, most employees are looking for work environments with modern amenities. So, a tenant build-out can allow you to create such a work environment. Moreover, you will not only attract good employees, but you’ll also maintain the employees.
This is one of the greatest disadvantages that come with tenant build-outs. Tenant build-outs tend to run over budget, especially when tenants fail to factor in the hidden costs of the project, as well as the cost of delays. These are costs that you can easily mitigate when you rent or lease a pre built space.
Tenant build-outs require a lot of time, especially if you are looking for impressive results. This is another factor that most people don’t consider when opting for tenant buildout. At times, your business will need to occupy the space as soon as possible. This, however, is not possible and can be worse in case of unforeseen delays. Such delays mean lost business days, which can be costly.
The project can drain you emotionally
When you opt for a tenant build-out, you will be responsible for searching for the contractors, as well as acquiring the necessary permits required by the state. Now, when it comes to searching for contractors, you will need to negotiate with them for the best deal possible. This can drain you, especially if you’ve never been into any construction project.
Also, when negotiating with the contractors, you will have less buying power and leverage than a property manager or landlord. Moreover, you will be in charge of the entire project, and it can be a big challenge especially if you’ve never supervised any construction project. However, you can easily avoid this by opting for a pre built space.