Tenant improvement is the largest area of commercial construction activity throughout the world. Every day there are countless offices being remodeled, facilities & apartments upgraded and employees being re-located. In the commercial Real Estate world, there are two major components to a building: the Shell, and the Build Out. The Shell is exactly what it sounds like—the outside walls, the floor, the roof, the exterior doors, and other systems that are part of the basic structure of the building. The Build Out is the building components added to configure the space to the needs of the tenant. Think of the offices, restrooms, and other facilities that convert raw space into some usable space.
Tenant Improvements are nothing more than the preparation of leased premises prior to or during a tenant’s occupancy. These improvements can be paid for by the landlord, the tenant, or both parties can come to a consented agreement on who foots the bill. Tenant-paid tenant improvements (TPTI) are the cost outlay paid by the tenant. The plain fact is that each year that goes by, tenant improvement costs are sky high and soaring even higher. Statistics show that in San Diego County alone, the cost of tenant improvements has been increasing every single week that ticks away.
One can therefore ask: Why the big increase? Subcontractors have never been busier than they have in recent history and they’re taking advantage of the fact that since they can’t do everybody’s work, they need to turn to “cherry-picking” the richest jobs. They couldn’t care less if they don’t get a particular job because of high costs; there have been more than enough desperate tenants who will pay whatever it takes. These subcontractors can’t remember the last time they’ve had to sharpen their pencil to cut a deal based on price; it’s been a take-it-or-leave-it market.
For whichever fairness to the subcontractors, the cost of materials likewise has gone berserk; so, some of their increases are legitimate. However, many of the contractors’ increasing bids are far in excess of any increases in materials’ expenses. They are literally filching people. Tenants need to pay very close attention to what it may cost to adapt the space to fit their needs and what the factors are that influence those additional costs to keep tenant improvements from becoming tenant destruction costs.
Nevertheless, despite the above factors, there still exists a few genuine contractors that have kept legacy, never taking advantage of the situation. One of them is R. H. Johnson Construction Inc. , a full service general construction company serving the state of Utah since 1972. They have helped public and private clients through every step of construction. For many years, RHJ Construction has specialized in Tenant Improvements, commercial building, remodeling and renovation, industrial building, new construction and pre-engineered steel buildings.
RHJ has worked with clients all over the state of Utah, as well as in California and Nevada. Their goal has always been to provide their clients with quality work on time and within budget. Consistent craftsmanship has built them reputation, loving what they do and never imagining doing anything else. They have worked with all kinds of people - restaurant owners, architects, doctors, software companies, religious organizations, universities, small business owners, government agencies, retirement communities, realtors, leasing agents ... yet all of them know RHJ Construction Inc as one that delivers quality work in a reasonable budget, no compromise.
Getting in contact with them is easy. Just Call 801-756-2211 or request a proposal from their website: http://www.rhjconstruction.com.
Give us a call at 801-756-2211 or request a proposal.