Are you considering building out a space for your business? Whether it’s your first time seeking a commercial home for your business or your company needs a new location to grow, here are five things you need to consider before you get started on your project.
1. Location, location, location. Having a location that is convenient for your customers and your staff is essential. If your business accepts or ships deliveries, proximity to major roads and interstates will also be a plus. You could have the perfect building design with lots of amenities, but if your business is difficult to get to, your prospective clients and employees may never find you.
Another factor concerning location is the municipality within which you’ll be working. Your construction company will need to have a firm understanding of the codes of the city or county where your business will be located. Having this knowledge—and local relationships—can fast-track the process of getting your plans approved and your build-out started.
Depending on your business needs, you may also want to be looking at commercial space in areas with heavy traffic and lots of growth. Examining demographic information and population projections will help maximize the potential of your location.
When the Dow Smith Company team thinks of build-out locations, we think about Seven Oaks Business Park in Smyrna.
Seven Oaks is a professional flex office complex located just off Interstate 24, two miles north of State Route 840 and two miles south of Sam Ridley Parkway. The high-end, multi-building development includes 2,000 square feet of incremental finished tenant offices, loading docks with 10x10 overhead doors in the rear, and warehouse/condo space throughout the development. Dow Smith Company has designed and constructed seven buildings on the property, with an eighth to open soon and a ninth on the way.
John Blankenship, one of the owners of Seven Oaks, says the old adage of location, location, location is true.
“Everybody says about real estate it’s location, location, location. With this space, it really does come down to location,” Blankenship says. Seven Oaks is so centrally located, it’s a stone’s throw from I-24 and mere minutes from 840. Local business owners in the park can get to Nashville quickly when they need to, but they don’t have to make the commute every day.
2. Budget. Lots of us were taught as children that it was impolite to talk about money. But, the sooner you can have this conversation with your build team, the better. Our economy is facing supply chain issues and labor shortages, regardless of industry. So, it’s best that clients are clear about what they want out of their space from the beginning. And, ensure that your contractor is clear about how much that will cost. Getting on the same page regarding your budget from the start will ensure a smoother process throughout the build-out and fewer cost surprises at the end of your project.
With commercial build-outs, you also need to have a good understanding of who is paying for improvements to the space—you or your landlord. Determine which things are “white box improvements” or items that are your landlord’s responsibility, and which items come out of your own pocket. Landlords will typically pay for things that will be useful no matter the tenant, including lighting, restrooms, and air conditioning. Tenants usually pay for things that are specific to their business like flooring, painting, and furnishings. Some landlords may even offer a tenant an improvement allowance. Be sure to have these conversations up-front so everyone is on the same page from the get-go.
3. Custom features and must-haves. In many commercial spaces, you may find you’re starting with a blank canvas—an open space with a concrete floor and some windows. You’ll have to select flooring, paint, walls, and appliances for your business, just to name a few. For some companies, a few offices and a lobby will do the trick, but other build-outs are more complicated.
For example, Dow Smith Company works with a lot of dentists and we have realized that those in the medical industry usually require custom solutions for plumbing, heating, and equipment. Because we understand those needs and have relationships with specialty equipment suppliers, we know how to budget and plan for those kinds of projects. Ensure your contractor has experience in your industry, especially if you need special accommodations for your space.
4. Realistic timeline. A typical build-out can take two to three months to complete. In a high-growth area, construction companies are busy, so they may not be able to get to your project right away. With the current state of the economy, be aware of and plan accordingly for long lead times on both labor and construction materials.
5. The importance of experience. Dow Smith Company completes 10 to 15 build-outs per year. When we become involved at the beginning of your planning process, we can provide a budget to help you understand all the costs associated with your project. The earlier we are involved, the sooner we can get a handle on the needs of all the stakeholders, which can even help you to better negotiate lease terms with your landlord. Many times, Dow Smith Company will serve as a liaison between the landlord and the tenant, working closely with both parties to ensure a smooth build-out experience. Our construction process allows us to plan ahead and get started earlier than other contractors, which means you’ll get into your new space faster and with fewer headaches.
If you’re thinking about building out a space for your business, give us a call before you get very far down the road. We can help you find a location, work out a budget, determine which features are a must-have for your business to thrive, and establish a realistic timeline for how long it will be before you can have a ribbon-cutting ceremony at your new place of business. Even if you’ve sketched out an idea on a cocktail napkin, that’s plenty for us to work with. From there, we can start the conversation about how long it will take to bring your ideas to life.
