Foundations of Real Estate Management

1
BOMA International

Foundations of Real Estate Management

Module 2 The Well-Versed Real Estate
Manager Tenant Improvements and Capital Projects
2
Objectives

• Explain the steps of a tenant improvement process
  from leasing negotiations between the landlord
  and tenant to payment of contractors 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

3
Tenant Improvements

• Lease negotiation
• Type and scope of TI
• Turn key v. construction allowance

4
Tenant Improvements

• Space planning
• Programming meetings
• Space design
• Goal A drawing of tenants general space layout
  for pricing construction

5
Tenant Improvements

• Budget bidding
• Goal Determine costs for TI project
• Work letter
• Construction drawings
• Architectural
• Mechanical, electrical, plumbing (MEP)

6
Tenant Improvements

• Soliciting bids
• Standard bid form
• Add alternates deduct alternates
• Evaluating bids
• Cost
• Construction schedule
• Quality
• Other
• Choose general contractor (GC)

7
Tenant Improvements

• Construction management
• General contractor
• Construction vendors
• Non-construction vendors
• Systems furniture
• Tenant cabling
• Office equipment
• Security
• Movers
• Schedule/PERT chart

8
Putting it Into Practice

• Work with your instructor to create a
• PERT chart in accordance with your
• workbook exercise

9
Tenant Improvements

• Inspections
• Types of inspections
• Certificate of Use and Occupancy (UO)
• Changes and clarifications
• Change order
• Requests for Information (RFI)
• Submittals
• Punch list

10
Tenant Improvements

• Payments and Liens
• AIA construction payment docs
• Retainage
• Liens
• Lien release
• Partial
• Final
• Tenant-run TIs

11
Outside the Tenant Improvement Process

• Building standards
• Buildings construction rules and regulations
• Green considerations
• LEED
• Materials
• Recycling
• Other

12
Capital Improvements

• Change or upgrade that improves the asset value
• Common areas
• Restrooms
• Roof
• HVAC
• Similar to managing tenant improvements