Tenant Improvement Construction Costs and Design
by Doug Rusk
Principal of DESIGNLine Architects, LLC
Phoenix Architecture Firms
Doug Rusk, Architect
DESIGNLine Architects
480-710-3861
E: drusk@designlinearchitects.com
W: www.designlinearchitects.com
Commercial Office Remodel
We’d like to share four “design tips” with anyone who is thinking about venturing into a Tenant Improvement for their commercial office or retail space.
1. A Tenant Improvement Renovation is Much Like a Home Renovation.
In many ways your business is your home. It’s where you and you staff spend most of your waking hours. As you work with your Architect consider in detail each room; who will use them and how they’ll function.
– In the same way that the kitchen and the family room want to be interconnected, you want to customize your commercial space so it better fits the interactions of your staff and the functions they perform.
– The operations manager of a popular Wine Bar and Bistro, for example, noted recently how productivity improved after the layout was reworked for their wine retail area. The new layout greatly improved the customer flow in the Bistro area for both the customers and staff.
2. The Branding of Your Firm Should be Emphasized in Your Tenant Improvement Design.
If you run a business, you own a brand. Whether done consciously or not, you have positioned your brand in the market and have an opportunity to emphasize that brand in your Tenant Improvement.
– The appearance of your lobby room, the signage and detail around the entry, and even your bathrooms should mirror the core values and the culture of you, your staff and your business.
– If you’re planning a remodel of your Dentist office, for example, then you might want to create a casual, comfortable social atmosphere, because that’s the primary market you’re targeting.
– On the other hand you may instead want to create more of a formal, professional, no nonsense atmosphere, because it meets your clients needs and the key attributes and benefits they desire.
– So, as you work with your Architect to draw up plans, take time to define your brand. Look at what you stand-for personally and as a business, and what differentiates you from competitors. Just going through the process of defining your brand can help you make distinctive design decisions that not only improve flow and function, but may inevitably help your business grow.
3. Generic Construction Costs for a Typical Tenant Improvement
There is no such thing as a “typical” tenant improvement. Each project has a different set of requirements that are determined by many varying 
factors. This graph illustrates some approximate construction costs based on historical data that you can use as a reference point when considering a standard office improvement. These figures are general and will most likely change based on your project’s scope and special requirements.
Again, we hope the estimated, ball park numbers to the right will help you come to terms with a realistic budget.
4. Determine Cost Estimate Early
– If you talk to the right Architect, they will help you identify your budget and design goals, and offer a low cost conceptual design package that will be complete enough to allow a qualified General Contractor to develop a +/- 20% cost estimate for your project. Our goal is to provide a low cost option for you to confirm your budget, before moving forward.
– And when the final drawings and specifications are completed and the project is bid to the subcontractors, very accurate costs are locked in, assuming no design changes.
Phoenix Architecture Firms
Doug Rusk is the principal of DESIGNLine Architects located in Gilbert, Arizona. DESIGNLine Architects specializes in office tenant improvements and residential design. We will ensure your Office Tenant Improvement will look more attractive and welcoming to your customers, while also increasing efficiency for you and your staff.
Doug Rusk, Architect
DESIGNLine Architects
480-710-3861
E: drusk@designlinearchitects.com
W: www.designlinearchitects.com
Home Remodeling Remains a Solid Investment in Phoenix, Arizona
Compiled by Doug Rusk, Architect
List of the Average Costs for 35 Popular Remodeling Projects in Phoenix, Arizona
While the average age of the American home will soon reach 30 years old, more and more homeowners are considering a Home Remodel. The costs of these major remodels, however, can be intimidating in today’s current market. The lists below compares the average cost for 35 popular remodeling projects in the Arizona Region with the value those projects retain at resale.
According to 2010-11 Remodeling Online Cost Value Report, Home Improvement projects such as bath remodeling, room additions, kitchen updates, exterior elevation “facelifts”, and making energy efficiency improvements remain a solid investments for homeowners in relative to the value of their home and neighborhood.
What are the cost of some specific remodels?
Topping the 2010 -11 Home Remodel Cost Value Report for Phoenix is the replacement of your Steel Entry Door (102.1% recouped) and/or Garage Door (83.9% recouped), because they both improve curb appeal so well and, consequently, improve your home’s resale value. For an estimated cost of between $970 – $1,197, both projects rank at the top their respective categories for two main reasons: 1) They are among the least expensive projects in the survey, and 2) They both recoup the most from their investment. Improving the curb appeal can affect a potential buyer’s first impression and your home’s resale value.
The fourth (4th) highest on the list this year is the Minor Remodel of your Kitchen, which will recoup 72.8% of the $21,046 in estimated costs. According to the 2010-11 Cost Value Report “in a functional but dated 200-square-foot kitchen with 30 linear feet of cabinetry and countertops, leave cabinet boxes in place but replace fronts with new raised-panel wood doors and drawers, including new hardware. Replace wall oven and cooktop with new energy-efficient models. Replace laminate countertops; install mid-priced sink and faucet. Repaint trim, add wall covering, and remove and replace resilient flooring.”
The seventh (7th) highest on the list this year is the Attic Bedroom Remodel, which will recoup 72.2% of the $51,428 in estimated costs. According to the 2010-11 Cost Value Report “convert unfinished attic space to a 15-by-15-foot bedroom and a 5-by-7-foot bathroom with shower. Include a 15-foot shed dormer, four new windows, and closet space under the eaves. Insulate and finish ceiling and walls. Carpet floor. Extend existing HVAC to new space; provide electrical wiring and lighting to code. Retain existing stairs, but add rail and baluster around stairwell.”
Home Renovations in Phoenix Means First Starting with a Clear Plan
Most home owners underestimate the number of decisions they need to make their Home Remodel successful. Proper planning helps you avoid spending extra money later.
- – Start an image folder by compiling pictures of spaces and buildings you love.
- – Write down a list of the rooms and functions you want to consider.
- – Identify your goals for project schedule and budget.
- – Whether consulting with your architect or contractor for ideas and advice, there are a variety of decisions you’ll need to work through. At DESIGNLine ARCHITECTS we offer an alternative Design/Build approach that will pin down the cost question quickly, so you can make the decision to move forward.
Home Renovations From Your Phoenix Architects
To set up an appointment contact Doug Rusk at 480-710-3861 or email us at drusk@designlinearchitects.com. We will ensure your Residential Remodel will look more attractive and welcoming, while also increasing efficiency and comfort for your family.
Doug Rusk, Architect DesignLine Architects, LLC Gilbert, Arizona www.designlinearchitects.com
Why does this Tenant Improvement Cost So Much?
“We just want to tear down a few walls and convert a storage area to a small break room. That can’t cost a lot, right?”
Clients asked questions like these in the early phases of a tenant improvement. The client has many questions during early phases of an office relocation, and they normally would prefer to pin down the cost question quickly, so they can make a decision whether to move forward.
Many companies these days are choosing to make a few minor revisions to their office space instead of building new a office building or undertaking a tenant improvement. Whether dividing up office space to sub-lease a portion of it, or making changes that improve productivity, or attracting customers, businesses are focused on ways to increase revenue with minimal expense.
Tenant Improvements are Not Always Easy
Moving walls for a tenant improvement is not as easy as you would think. Actually, we don’t really move walls. Existing walls are demolished, and new walls are built from scratch in new locations. Also, changing wall locations requires relocating HVAC vents, light fixtures, sprinkler heads, electrical wiring and outlets, telephone and data cabling, and sometimes moldings or wainscoting. Where existing walls are demolished, entire new areas of flooring and ceiling material are usually needed, because simply bandaging the wounds left by demolished walls would be unsightly. This means recarpeting an entire room or an entire office suite, so the carpet matches throughout.
Many construction trades are needed to relocate even one wall, so a General Contractor must be hired to coordinate the necessary sequence of events amongst the various trades. The GC will hire framing, drywall, HVAC, electrical, cabling, flooring, and demolition subcontractors, and charge about 20% above and beyond the total subcontractors’ fees. A minimum amount is charged to make it worth the effort, so small tenant improvement projects cost more per square foot than large projects.
Tenant Improvements Cost Estimate Provided Quickly
DESIGNline ARCHITECTS offers an alternative Design/Build approach for tenant improvements that will pin down the cost question quickly, so you can make the decision to move forward. We’ve developed a three-step approach:
– Identify your budget and design goals, and offer a low cost conceptual design package. Once you approve the conceptual design and scope of work, we will work with your general contractor to confirm the approved design is on budget, with a construction cost estimate to within a +/- 20% range of variability.
– Once the conceptual design and budget align, we will finish your final design phase. Then when the construction documents are 75% complete, we will again work with the contractor to refine the construction cost estimate to within +/-10% range.
– And when the final project is bid to the subcontractors, the costs are locked in, assuming no design changes.
About the Author
To set up an appointment contact Doug Rusk at 480-710-3861 or email us at drusk@designlinearchitects.com. DESIGNline ARCHITECTS will help you avoid many common mistakes that are made with construction projects. We will also help you to make decisions that will enhance your business by guiding you through the entire commercial remodeling process from concept to completion. We will ensure your tenant improvement will look more attractive and welcoming, while also increasing efficiency and comfort for your employees.