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  • Brandon Bain

Do Tenants benefit by paying construction cost “upfront” and doing the work



Just because the tenant pays and constructs or remodels his own office space doesn’t necessarily work for the landlord or equates to a savings in the deal.1. Landlord has construction companies on board for bids and he can negotiate better prices for materials through volume discounts. Landlord draws down funds from the construction figure, called handling or administrative fees/overhead and boy do they like to collect those fees. Who wouldn’t. Tenant are required to have a contractor that is on the LL approval list or accepted for his work, cleanup, and warranty and has all the licenses required in place. Bottom line, it’s the landlords property and he is picky, and should be, about who gets to work or build out space. HVAC, Plumbing, Electrical contractors will need to be familiar with the building as owners will control this part of development project. So basically the tenant gets his sheetrock guy, carpet guy,  painter, furniture, interior designer and phone equipment to contract. Suggestion, unless you are a construction company seeking space, 1. attend the preliminary planning and final construction drawing meetings, 2. Step aside and let the Landlord construct the space, 3. Move in without this headache. Your brother-in-law may be sore that he didn’t build out your space, but any damage, liability, re-do or missing move-in dates is out of YOUR hands. Bain Commercial TREC Lic 262331 Brokerage Since 1980

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