Tenant Buildouts: Thought Starters

By: Mark Schroeder and Ian Reeves

Commercial workplaces make up a huge proportion of real estate and economic activity and require skillful navigation to create. Having a great place to work is about more than space or furniture; it’s about having a home base that’s a hub for operations, values and culture.

Even though some organizations seem to have this down to a science, the fact is many tenants find themselves in uncharted waters. Whether you’re a start-up or new organization, face expansion, relocation or are grappling with the evolution of what a workplace is, having a good sense of the process is imperative.

Although the office has always been perceived as an extension of core values; the “brand” has taken on new meaning for the workforce.

In this post-Covid world, the task of enticing employees to want to come back to the office with forward thinking, flexible, comfortable, safe working environments that will enable business owners attract and retain employees should be top-of mind in new office designs.

At a very high level, most organizations generally track with a process similar to the following:

• Consider allies who can help you navigate from day 1, such as a licensed commercial Real Estate Broker • Determine where you want to be geographically • Establish the type of facility that will suit your needs • Consciously evaluate your workforce and what matters to them • Identify key market dynamics such as real estate costs, commute times, flexibility options to support growth, convenience or amenities attractive to your workforce, proximity to other relevant organizations, etc. • Search the market for available space • Conduct Due Diligence and negotiate lease terms • Work with trusted partners to plan and design your space • Build out your space • Occupy and evaluate

This brief article will lightly touch these phases, but what’s important to keep in mind is: you are not in this alone. Trusted allies are your best resources to uncover opportunities, blind spots and balance out your project team. So whether you’re brand new to this, an old pro or it’s been a while, first: build a great team.

Important Players

For many, the rational place to begin is finding a licensed commercial real estate partner. Not entirely dissimilar than when shopping for a personal home and leveraging a Realtor, a good commercial partner will offer market insight, ability to help evaluate your preliminary needs, and provide brokerage services to negotiate leases that can have substantial cost implications short and long term

That broker will act as the liaison between all building owners, landlords, architects, designers, contractors, etc. and will set the initial tone for the project as it progresses thru the various stages.

A good Broker will be your guide to finding opportune properties to consider, orchestrate site visits, and communicate with building owners. They will typically provide a wide range of options that can then be focused down to priority sites.

Ultimately to permit and construct your project, you will require a licensed Architect, even if only renovating existing space. And some commercial real estate partners begin on-boarding a design partner early enough to help you identify goals and major project parameters while your property search is being conducted, as this can streamline the process significantly.

Many however begin on-boarding a design partner once a focused “short list” of potential properties is established so that design partner may produce very preliminary floor plans known as “Test fits” to help inform the final decision about where to locate.

It cannot be overemphasized how important the selection of a great design partner is to the ultimate success of your project.

Many firms are qualified to produce drawings to permit and build-out spaces, however every project encounters challenges, and whether these are navigated with organized calm or high drama can often be greatly influenced by your design partner.

Depending on schedules, budgets, or recommendations on design partners that would suit your organization, Brokers will typically issue a Request for Proposal (RFP).

This RFP will include detailed information about the client, overall project parameters including desired size, locations, expectations of services, documentation, deliverables, contracts, timeline, etc. The RFP includes a spectrum of requirements necessary to carry the project from inception through final occupancy and beyond.

When meeting potential partners, consider not only the cost of fees; but, also relevant experience, size and capabilities, team makeup, personalities and proven ability to execute and deliver great results.

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• How eager are they to get to know your unique needs? • How much does the portfolio of work they share inspire you? • Are they willing to bring the latest insight, new ideas, or questions your team hasn’t yet considered to bring value to the process?

You’ll be working closely with this team for many months or even years (on larger projects), so be sure and find talented people you communicate well with and enjoy working with. There must be confidence in the chosen design firm as well as a level of trust; if you don’t hit it off on a personal level then that firm may not be the best fit for you.

Budget

There are many, many factors that go into anticipating project costs and it’s important to lean on your Broker and Architect to establish the foundation of a good Project Budget. Leaning on your project partners can be invaluable in making sure expectations are realistic and all components of a project (not just construction costs) are being managed.

The Brokers will typically negotiate “Tenant Improvement” money financed by the lease that will help offset the cost of your buildout, and make sure other lease terms that impact the budget are managed.

Your design partner can help here as well by offering competitive “Soft costs” (like design fees, engineering fees, graphics/signage, etc.), as well as providing guidance on level of design, initial product specifications, etc. by applying their experience in the industry, types of projects and the associated cost/SF for reach type of project, they can begin to set the expectations for level of design.

Although your design partners can lay some great groundwork for your project and managing your expectations, be forewarned that there are world events that are skewing the entire budget process including but not limited to supply chain disruption, labor shortages, backed-up permitting and construction delivery, etc.

Even the best preliminary budgets need to be actively maintained/ managed throughout the entirety of the project!

The Design Process

As a property is selected, a design partner on-boarded and budgets are formed, it’s time for the design process to kick into high gear! You are going to hear phrases used like:

• Visioning • Test-Fits • Schematic Design • Design Development • Construction Documents

These are industry standard terms defining specific stages of the design process.

Each stage has an associated level of information that is provided to all parties as the project progresses; each stage builds upon the previous one until the contract documents are completed and built by a qualified contractor. Information is key and the Architect’s first order of business is to gather as much information from you as possible. As stated before…it’s not just about space; it’s about the parts and pieces that makes your company unique, what you do, how you do it and why you do it!

Get ready to talk about how the sausage is made; overall business practices, specific business units, employees, adjacencies, and all the functional ingredients that will make your space complete. The architect must become very intimate with your company so that they can best determine how they will provide the necessary design elements for current size, future growth, desired look and feel of the space, branding, design trends, etc.

Don’t be shy…any and all pertinent information that will help the designer create an environment that will survive, maximize your ability to attract and retain talent in the workforce and thrive well into the future is the overarching goal!

As the design progresses, you and your design partner will work closely to refine early ideas, balance your program with final drawings, and make sure your project’s getting the most out of the property you’ve selected.

A good design partner will also ensure your vision is communicated clearly through the design by establishing a clear sequence of experiences, brand messaging, and a look and feel of design elements, like color schemes, finishes, furniture and architectural spaces not only work well, but inspire.

Lastly, base building considerations are key to making sure the nuts and bolts of the things like restrooms, IT access and infrastructure, controlled access in/out of your suite, etc. are all working smoothly.

Construction Documents are a set of detailed instructions that contain plans, elevations, sections, specifications, details, etc. that define every relevant project detail to communicate scope clearly to the awarded contractor.

These documents also include the relevant consultants and trades including Mechanical, Electrical and Plumbing engineers as well as Low Voltage, AV, and often specialty consultants like Structural engineers, Acousticians, or others.

All relevant drawings are compiled into one set of Construction Documents that are submitted to the jurisdiction for a building permit.

Once again, the selection of a great design partner paramount when working with consultants and the jurisdiction; their experience within a particular jurisdiction will help guide the project to accommodate the pertinent building codes, provide specifics, information, reports, petitions, etc. that may be required and include any particular jurisdictional nuances necessary to obtain the building permit.

It must be noted that a common misconception is that Construction Documents and the Construction Process are exact and every aspect of the design/construction has been accommodated.

New construction must always tie into the existing building in every regard; the best laid plans sometimes require changes to meet these existing situations and the construction process must remain fluid to deal with the particular challenges that happen on every project.

That said, your project team is your eyes and ears throughout the process keeping you informed regards to design/construction changes for the unique issues uncovered during construction and how they affect schedule, budget, etc.

Full disclosure of construction issues or seemingly minor adjustments including their proposed solutions, project impacts, costs, etc. should be vetted by the team so that an informed decision is made on how to best to proceed. Once again, communication is key!

Next Steps

Ultimately… construction completes, furniture installs and your workforce moves into a great new space! Does that mean the process is complete? No. As you live in the space there should be periodic assessments regarding the functionality of the space itself, workplace configurations, flow, utilization, etc.

It’s important to keep in mind that how we work is deeply personal and even the best designed projects may face ongoing opportunities for adjustment, learning or improvement.

Having some flexibility baked into your program, utilizing furniture that may be adjusted and reconfigured and making sure your workforce knows the culture your space supports is a naturally growing effort will not only allow more resilient adaptation; but, will empower your teams to take ownership and pride in making your new workplace amazing for years to come.

About the Author

Mark Schroeder, AIA, IIDA, WELL AP serves as Technical Director with IA Interior Architects Atlanta office. He brings over 21 years of professional experience playing a leading role in managing the technical components and providing architectural support for a wide range of markets – from corporate project types.

Mark has worked on some of the Atlanta studio’s most high-profile accounts and projects, including Papa Johns, Salesforce and Twitter. He is a WELL Accredited Professional with a Bachelor of Architecture from the New Jersey Institute of Technology (NJIT).

About the Author

Ian Reeves AIA, NFPA, ICC, NCARB, serves as Design Director with IA Interior Architects. With over 20 years of professional experience, Ian Reves is the Design Director for IA Interior Architects’ Atlanta office. In this role, he manages the evolving creative process, focusing on workplace design and helping clients reimagine the future of work. Ian’s approach effectively incorporates innovative solutions that engage and inspire, enrich the community and curate highperforming projects centered on the human experience.

Ian graduated with a Master of Architecture from the Georgia Institute of Technology and a Bachelor of Fine Arts in Graphic Design and Illustration from the Savannah College of Art and Design (SCAD).

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