Companies trying to build out office space these days face a changing trifecta of challenges.  Landlord’s have the upperhand in the leasing market and don’t need to pay high TI’s to lure in tenants.  It’s busy for contractors, and therefore supply and demand means higher labor and material pricing.  Finally, employees are getting jealous when they see their friends’ offices at other companies, meaning companies must get their TI’s done right to keep up with the Joneses.

How can a tenant still afford a build-out with great design?

• Avoid Moving the Lights: With the recently updated Title 24 changes, a project’s budget can spiral out of control if the existing light fixtures need to be relocated. If your design can prevent you from making replacements, it is wise to save your TI dollars to create greater functionality and beauty in your space verses paying for code upgrades.

• Rethink Your Layout: Too many tenants lease more space than they really need because they attempt to transpose the space plan from their old space into their new space. Moving offices is a great way to examine techniques such as benching, hotelling, or even just larger offices that are shared could be options. Maybe you don’t need that big empty boardroom anymore and can rent someone else’s for your monthly meetings.

• Put Your Dollars Where It Matters: In a tight budget, tenants should prioritize what office functions are the most critical and spend their money accordingly.   Don’t let that IT Manager tell you how to cool the server room – that’s the mechanical engineer’s job. If your office rarely gets visitors, just get a basic reception desk and don’t waste money on an expensive entry hardwood floor. Perhaps your company culture is to eat lunch in the kitchen – if so, spend your money on a kitchen with great amenities.

• Create Alternative Spaces to Meet & Work: Having a casual place for meetings or to bring a laptop to work breaks up a long day for employees and creates a more comfortable environment that has tremendous value without costing lots of money.

• Take Control of Material Specification Decisions: Make sure your design team is specifying material and equipment that meets your budget. Work closely with a contractor early in the design process to check pricing. This will give the project team an opportunity to find an alternate if needed.