08 · 30 · 2018
Defining a Tenant Improvement Allowance
If you are a tenant and you are getting ready to sign a lease or, if you are preparing for a workplace transition, this is going to be valuable. We are defining a tenant improvement allowance and show you what that means to you, as a tenant. We know it can be confusing. There are so many different perspectives that are brought up but these next few moments are all about you.
This will give you clarity from your perspective as well as give you the value and the answers that you need to know before signing a lease agreement. Also, if you just signed a lease agreement, this will help you immensely with the important details you need to know right away. Enter the “Tenant Improvement Allowance”. This is an intimidating phrase every tenant hears. You may have heard it in your conversations with your broker or landlord. The tenant improvement allowance can be viewed in many different ways to different tenants. Certainly it depends on your industry and is seen from your unique perspective.
For most, it is an undefined area that needs to be defined clearly so that you can get the most out of your new space. For this reason, your tenant improvement allowance can actually be a great vehicle for your new space to be improved. It can be a good tool to fit out your new space. Create your team’s culture. Also, to meet your team’s functional requirements. Your tenant improvement allowance has the potential to reach those objectives. If you have clarity and planning early on.
While working with hundreds of tenants transitioning to a new workspace, we know that tenants who overlook defining their TIA almost always will run into significant problems down the road. Having a clear understanding of what those TIA dollars and cents actually mean to you in the real world, means that your company can have a workspace that is inspiring. Also, productive and profitable. However, the greatest fear that we see in tenants or user-groups, is the very real fear of whether this tenant improvement allowance is actually going to bring them to their destination. Will it create the holistic end product that their team needs?
If we look at your new space as a vehicle that is going to bring your team forward for the next 5-10 years and longer, you have to ask the question: Do I really have the needed funds to fully fit-out that space? To create an environment that is functional for my team? From a culture standpoint and inspiring for my team from a productivity and profitability standpoint? Maybe you have been concerned that your TIA won’t be able to fund your vision for your new space. If you have felt that way before, you are not alone. That is a big concern many tenants and user groups have.
Certainly it is not an unfounded fear. There are many elements that go into a workspace transition. Many of them are not apparent from the surface. This can be a very real threat, as there is no use having a half-completed space for your team. What are the consequences of your goals not being achieved in your new space? What is the impact of achieving these goals at a delayed time? And it is not just the TIA. Think about your time-frame for a moment.
You might be in an existing lease or space relationship that may have overrun or penalties for staying in the space longer. That can be a very real concern as moving into the new space late and at a delayed time, means unnecessary costs and expenses to your company. Having a thorough plan in place and knowing the milestone time-frames and milestone schedules solves these issues. You can know goals will be met without surprises from the space requirement perspective and also from the time-frame perspective. We often encourage tenants like you to look at the consequences of unclear TIA and time-frames.
“Could we finally have a space that reinforces our branding? That amplifies our sales and marketing efforts… all without going over budget and without going over-time?” The good news is: yes, it is possible. The way we help you achieve that is by the width and depth of thought that is put into the space and the whole plan and improvement beforehand.
The most cost effective and the easiest time in your project for that planning to occur is obviously prior to any work being done. There is something to be said about having a team that can help you define your end destination from the very outset, rather than mid-way through. Imagine this, from your very first conceptual drawings, together we will define the full vision for your new space. We will understand how your team actually works. How your team is motivated. How your team communicates.
“If a thorough plan is put in place with knowledgeable professionals beforehand, it is absolutely possible to have a defined vision and a profitable space and be able to reach it on budget and on time.” The straight line is the shortest distance between two points. And when we identify that second point together, we are able to take you there as soon as possible. And within your expected investment.
What is being identified and focused on is your ideal end result for your new space. Defined from a holistic perspective. Certainly that results in a certain path and clear strategy that tells us exactly how to get you to your end destination within your budget and on time. Know your numbers. Planning is king. Earlier is easier. Working with Infinity Group means that you have strategic planning. Early on and have continued clarity throughout your transition. When you work with one single point of accountability, you won’t have to guess. You won’t have to hope. You will have a partner who is experienced. Who is on your side and who handles the entire process in getting you your dream workspace.
If you would like to have the Infinity Group Team take a look at your workplace transition, call us to set a time with one of our Client Partners. When you call (860) 726-9384, we will schedule a time to help you gain clarity early on with your new space and help you achieve your end goals on time and within your tenant improvement allowance.
Check out this blog on Spotify and catch up on some of our other great content in audio version! https://open.spotify.com/episode/1neN1tacBC3aiUbaBY9Pms
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