Looking for a commercial contractor for renovations or tenant improvements for your company property in Ranchos Palos Verdes, CA? Look to Rachel Matthew Development, one of Ranchos Palos Verdes’s leading commercial construction companies.
From large commercial renovation projects to small remodels, our workmanship adds the quality detail to your practical workspace. Rachel Matthew Development has renovated 20,000 sq. ft. warehouses into studio space; office buildings into medical training facilities; and outdated retail shops into commercial kitchens and sit-down restaurants.
We love taking boxy, dated spaces, then adding a more user-friendly workspace and improved lighting to make a productive, modern office.
If you have the shell of the building and need tenant improvements done to fit your company’s needs, we’ll provide a cost-effective bid to meet your expectations. We handle both large and small renovation and tenant improvement projects across the Ranchos Palos Verdes, California area.
View some of our renovations and tenant-improvement work here. To learn more, please call our office to speak with Jared Padilla about an estimate for your commercial renovation project at 424-501-6253
What are Tenant Improvements in Ranchos Palos Verdes, CA and what can I expect?
Tenant improvements are commonly called “TI” for short or “tenant improvement allowances”. As a tenant, you have the potential with any landlord to have your space be it Retail, Office or Warehouse property be improved. The mistake most tenants make fall under the following categories:
- Expecting the landlord to do too much of the improvements
- Under-estimating the true costs of the improvements
- Not understanding how the allowances work
- What is meant by “move in ready space”
Let’s tackle each of the bullets above to provide some clarity on what is expected versus what the true reality is for a tenant leasing a commercial property.
Managing Expectations for Tenant Improvements in Ranchos Palos Verdes
For all commercial properties, a property owner has exposure or risks. These risks equate to money, dollar, and cents- meaning if a landlord dedicates funds to finish out a space depending on the cost, they have to measure their exposure. It is just being smart about how they mitigate their risk with a new tenant. The higher the allowances to make the space ready for a tenant, the more the money gets amortized into the base rent or more term is asked for from the tenant to absorb the costs. Keep in mind, as a tenant you want a good deal, but the landlord wants to make positive cash flow. Any type of fixture that is not permanent meaning it does not stay with the property would be on the tenant’s nickel, this bodes especially true in Retail situations.
Costs of construction and improvements in Ranchos Palos Verdes
Typically, all estimates are approximately 15-20% off and unfortunately, it is not usually in the favor of the tenant. The construction process has to be managed whether the tenant is using the landlord’s contractors or their own. You do not have an inordinate amount of time to get your tenant improvements done either if you are using your own contractors and they delay it could eat into your operational period. Highest costs are always HVAC, re-routing electrical and plumbing.
Allowances and how they work – Move in Ready
A commercial property is made move in ready when tenant finishes out is “substantially complete” that means a tenant can take possession of the space and start running their business fairly quickly. Again, all non-permanent fixtures are the tenant’s responsibility, if it does not stay with the commercial property then it is not the landlord’s concern. If a landlord dedicates funds to finish out your space that means the ceiling is what they offer. As an example, if $10,000 is dedicated that means that is all you have if a tenant can provide the finish out at a lower cost, they do not get to keep the money left over. Also, the landlord never cuts a tenant a check and says go ahead and finish out your space, it is always controlled.
Our mission is to create a beautiful commercial building for each customer. We will build it right, on time, on budget and when we turn over the keys, we want to have a stronger relationship than when we broke ground.
–Steve Nakamura, president of Rachel Matthew Development, Inc.