Foundations of Real Estate Management TM 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 TM 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 TM 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 TM 4 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 TM 5 Before Construction Starts  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 TM 6 The Bid Process  Soliciting bids  Standard bid form  Add alternates; deduct alternates  Evaluating bids  Cost  Construction schedule  Quality  Other  Choosing a general contractor

Foundations of Real Estate Management Module 2: The Well-Versed Real Estate Manager TM 7 Construction Vendors  General contractor  Construction subcontractors  Non-construction subcontractors  Systems furniture  Tenant cabling  Office equipment  Security  Movers

Foundations of Real Estate Management Module 2: The Well-Versed Real Estate Manager TM 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 TM 9 Finishing Up the TI  Inspections  Types of inspections  Use and Occupancy Certificate  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 TM 10 Paying for the TI  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 TM 11 Other Considerations  Building standards  Building’s construction rules and regulations  Green considerations  LEED ®  Materials  Recycling

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