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Design-Build Team: Why You Need One Before Signing a Commercial Lease

So, you've found the perfect commercial space for your business and you're ready to sign the lease...but wait! It's important to consult with a design-build team before signing on the dotted line. 

What is Design-Build?

Design-build is a collaborative approach to construction that brings together architects, engineers, and contractors from the beginning of a project to ensure that all aspects are considered and accounted for. This integrated approach results in better communication and coordination between all parties involved, which leads to fewer delays and errors. They can help you navigate the often complex world of commercial leases and make sure that you end up with a space that meets both your needs and your budget. Here's why:

They Can Help You Negotiate Tenant Improvement Credits or "Free Rent" 

The landlord may offer you tenant improvement credits or free rent as an incentive to sign a lease, but you need an architect and contractor on your team to determine the cost and timeframe needed for your tenant improvements in order to properly negotiate lease terms. Without their input, you could end up signing a lease that's not feasible for your business. 

They Do a Thorough Review of the Landlord’s Design & Construction Rules and Requirements

Before signing a commercial lease for your business, it's crucial to have a design-build firm review the landlord's design and construction rules and requirements. These guidelines can have a major impact on the design, budget, and timeline for tenant improvements.

A design-build team can help navigate these rules and negotiate with the landlord to ensure a successful project. Without a thorough review and understanding of the landlord's requirements, you may encounter unexpected roadblocks or added expenses during the design and construction process.

Design-Build Team

They Know the Important Considerations 

If this is your first time building out a commercial space, you might not think about important considerations like parking requirements, disabled access, or needed mechanical, electrical and plumbing updates. That's where a good design-build team comes in. They can help you navigate the often complex world of commercial codes and make sure that you end up with a space that meets both your needs and your budget.

What is a Landlord’s Work Letter?

As a commercial tenant, you may come across the term "landlord's work letter" during lease negotiations. This document outlines any improvements or alterations that the landlord agrees to make to the leased space before the tenant moves in.

It is important for tenants to carefully review and negotiate the terms of the work letter, as it can potentially have a significant impact on the rent, build-out cost, and operating expenses for the duration of the lease.

For example, the landlord may agree to cover the cost of installing a new HVAC system, but the tenant may be responsible for maintenance and operating expenses going forward. You’ll need a great design-build firm to review what your landlord is providing to best understand the full project costs.

They Can Save You Time and Money 

Because design-build teams work together from the start of the project, they can often identify potential problems early on and find solutions that save both time and money. This collaborative approach leads to fewer delays and errors, which means getting your business up and running in your new space sooner rather than later. 

Signing a commercial lease is a big decision - but it doesn't have to be a stressful one. By consulting with a design-build team before signing your lease, you can be confident that all of the important details have been taken care of. From negotiating tenant improvement credits to making sure your space meets all local codes and regulations, a design-build team has you covered. So go ahead and sign that lease with confidence!

Though it may seem like an extra step, consulting with a design-build team before signing your commercial lease can save you time and money in the long run. A good design-build team will do a thorough review of the landlord’s rules and requirements, help you negotiate tenant improvement credits or "free rent", and generally just be there to answer any questions you have along the way. Design-build is a collaborative approach to construction that brings together architects, engineers, and contractors from the beginning of a project to ensure that all aspects are considered and accounted for. 

Letter Four is one such company-- we would be more than happy to talk with you about how we can help make sure your transition into your new space goes as smoothly as possible. Give us a call today!

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