As a tenant improvement contractor, we are often invited out to look at a space for a new business before the business operator signs their lease (best time). Their main objective is to learn what the walls, floors and lights will cost. We provide a more holistic picture by default. We will look at all the components of the space to be sure the information we're providing is thorough. The mechanical system (HVAC) is one that can raise some big red flags! Here are some questions that need to be asked and answered:
1) Does it work
2) Has it been serviced recently, frequently?
3) Is it efficient?
4) Is it on its last leg?
5) Is it supplying the neighbor with free AC?
6) Who will replace it when and if it dies?
7) Is the landlord guaranteeing its operation?
8) How do we test it and when?
9) What should the lease say about HVAC?
These questions and their answers can be worth up to $20,000.
How do you properly evaluate a retail space and decide if your business will succeed there? The construction process is a large part of the front end investment and many factors can significantly alter the costs of opening the doors. Here we discuss what's not on the brochure!
Tuesday, February 2, 2010
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