Whether you are looking to take advantage of tenant improvement allowance, renovating an existing office space or building a new corporate headquarters in Vancouver, Edmonton, Calgary or Toronto from the ground up, TruSpace is ready to manage the office build process and create a sophisticated workspace under a tight deadline.
The tenant improvement allowance is a key component of any lease negotiation that is provided by the landlord to build-out or retrofit an office space based on the tenant’s requirements. Depending on the amount of the tenant improvement allowance, as well as the length of the lease term it can have a significant impact on the negotiated rental rate.
There are typically two ways a tenant improvement allowance is provided by the building owners to fit-out or renovate an office space:
Turn Key Build-Out: The landlord covers all the costs of the build-out process as part of the agreed upon rent and space plan that outlines the scope of the construction.
Stated Dollar Amount: The structure typically sees the Landlord provide a fixed dollar amount for the tenant to use towards building out the space.
For example, if the landlord estimates the cost of the build-out at $45.00 per square foot, and that is the allowance agreed upon in the negotiated rental rate, but in reality, the landlord actualy builds-out the space for $33.00 per square foot, then the tenant has lost $12.00 per square foot that could have gone towards their office improvement.
Another issue with allowing the landlord to control the improvement dollars is that the tenant relinquishes control of where the money’s been spent on their space. It is not uncommon to have surprises show up during the build-out process that does not favour the tenant.
In most cases, negotiating a stated dollar amount is the best way for tenants to maintain control and get the best value from their tenant improvement allowance. The tenant then brings on their own design build team to oversee the design and construction process.
Truspace has the experience and expertise to help with the tenant improvement allowance. We can review the space you are looking to rent and give you an accurate no obligation quote based on your office requirements; this will help capture the savings that benefit you, the tenant, rather than the landlord.
We believe that every business requires a workspace that fits the needs of both employees and the company. We understand that different industries have different needs and there is no one size fits all when it comes to office design, so we work alongside you to develop a sophisticated office space based on the needs of your business.
We have experience working with clients in all types of industries, both big and small, from manufacturing, IT to accounting and healthcare.