Foundations of Real Estate Management BOMA International ® Module 2: The Well-Versed Real Estate Manager Tenant Improvements and Capital Projects ®

Foundations of Real Estate Management Module 2: The Well-Versed Real Estate Manager 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 Management Module 2: The Well-Versed Real Estate Manager 3 ® Tenant Improvements Lease negotiation  Type and scope of TI  Turn key v. construction allowance

Foundations of Real Estate Management Module 2: The Well-Versed Real Estate Manager 4 ® Tenant Improvements Space planning  Programming meetings  Space design  Goal: A drawing of tenant’s general space layout for pricing construction

Foundations of Real Estate Management Module 2: The Well-Versed Real Estate Manager 5 ® Tenant Improvements  Budget bidding  Goal: Determine costs for TI project  Work letter  Construction drawings  Architectural  Mechanical, electrical, plumbing (MEP)

Foundations of Real Estate Management Module 2: The Well-Versed Real Estate Manager 6 ® Tenant Improvements  Soliciting bids  Standard bid form  Add alternates; deduct alternates  Evaluating bids  Cost  Construction schedule  Quality  Other  Choose general contractor (GC)

Foundations of Real Estate Management Module 2: The Well-Versed Real Estate Manager 7 ® Tenant Improvements Construction management  General contractor  Construction vendors  Non-construction vendors  Systems furniture  Tenant cabling  Office equipment  Security  Movers  Schedule/PERT chart

Foundations of Real Estate Management Module 2: The Well-Versed Real Estate Manager 8 ® Putting it Into Practice Work with your instructor to create a PERT chart in accordance with your workbook exercise

Foundations of Real Estate Management Module 2: The Well-Versed Real Estate Manager 9 ® Tenant Improvements  Inspections  Types of inspections  Certificate of Use and Occupancy (U&O)  Changes and clarifications  Change order  Requests for Information (RFI)  Submittals  Punch list

Foundations of Real Estate Management Module 2: The Well-Versed Real Estate Manager 10 ® Tenant Improvements  Payments and Liens  AIA construction & payment docs  Retainage  Liens  Lien release  Partial  Final  Tenant-run TIs

Foundations of Real Estate Management Module 2: The Well-Versed Real Estate Manager 11 ® Outside the Tenant Improvement Process  Building standards  Building’s construction rules and regulations  Green considerations  LEED ®  Materials  Recycling  Other

Foundations of Real Estate Management Module 2: The Well-Versed Real Estate Manager 12 ® Capital Improvements  Change or upgrade that improves the asset value  Common areas  Restrooms  Roof  HVAC  Similar to managing tenant improvements