Foundations of Real Estate Management

TM

BOMA International ®

Module 2: The Well-Versed Real Estate Manager

Tenant Improvements and Capital Projects

Foundations of Real Estate ManagementModule 2: The Well-Versed Real Estate Manager

TM

2

Objectives

Explain the steps of a tenant improvement process from leasing negotiations between the landlord and tenant to payment of contractor’s retainage invoice

List three methods construction manager uses to ensure construction bids reflect “apples to apples” comparisons

Describe how to integrate recycling into construction process

Foundations of Real Estate ManagementModule 2: The Well-Versed Real Estate Manager

TM

3

Tenant Improvements

Lease negotiation Type and scope of TI

Turn key v. construction allowance

Foundations of Real Estate ManagementModule 2: The Well-Versed Real Estate Manager

TM

4

Space Planning

Programming meetings

Space design

Goal: A drawing of tenant’s general space layout for pricing construction

Foundations of Real Estate ManagementModule 2: The Well-Versed Real Estate Manager

TM

5

Before Construction Starts

Budget bidding Goal: Determine costs for TI project

Work letter

Construction drawings Architectural Mechanical, electrical, plumbing (MEP)

Foundations of Real Estate ManagementModule 2: The Well-Versed Real Estate Manager

TM

6

The Bid Process

Soliciting bids Standard bid form Add alternates; deduct

alternates Evaluating bids

Cost Construction schedule Quality Other

Choosing a general contractor

Foundations of Real Estate ManagementModule 2: The Well-Versed Real Estate Manager

TM

7

Construction Vendors General contractor

Construction subcontractors Non-construction

subcontractors Systems furniture Tenant cabling Office equipment Security Movers

Foundations of Real Estate ManagementModule 2: The Well-Versed Real Estate Manager

TM

8

Putting it Into Practice

Work with your instructor to create a

PERT chart in accordance with your workbook exercise

Foundations of Real Estate ManagementModule 2: The Well-Versed Real Estate Manager

TM

9

Finishing Up the TI Inspections

Types of inspections Use and Occupancy Certificate

Changes and clarifications Change order Requests for Information (RFI) Submittals

Punch list

Foundations of Real Estate ManagementModule 2: The Well-Versed Real Estate Manager

TM

10

Paying for the TI Payments and liens

AIA construction & payment docs Retainage Liens

Lien release Partial Final

Tenant-run TIs

Foundations of Real Estate ManagementModule 2: The Well-Versed Real Estate Manager

TM

11

Other Considerations

Building standards Building’s construction rules and

regulations Green considerations

LEED®

Materials Recycling

Foundations of Real Estate ManagementModule 2: The Well-Versed Real Estate Manager

TM

12

Capital Improvements

Change or upgrade that improves the asset value Common areas Restrooms Roof HVAC

Similar to managing tenant improvements