Our client came to us with a building that was approximately 85% vacant. We carried out a full financial and comparative leasing and building analysis. Our research showed that whereas the building was in a strong market area, it had no presence or curb appeal. The client pointed out that the building has just been fully renovated, so did not see this as a problem.
The original renovation was done without taking many factors into consideration. There was a coat of paint put on the existing wallpaper, inexpensive and unattractive carpeting was installed in all common areas. Yes, the building looked cleaner, but it still had no presence. We completed a design cost analysis based on the improvements we thought the property required in order for it to achieve a successful leasing program.
Armed with the financial, leasing and construction information we reviewed the situation with the client once again. Following a full analysis of the information, the client agreed with our overall program proposal. By using our in-house staff we re-designed the interior of the building to fit within the approved budget but not to exceed market conditions. The total cost of the renovation was approximately 30% lower then it would have been using conventional methods. Much of the cost was saved by our own in-house staff creating the design, eliminating the need for expensive consultants. Our unique knowledge of design, construction, marketing and leasing made this project cost effective and possible. Following the renovations, the building quickly achieved a 98% occupancy with tenants with strong covenants.
There is no magic in designing a great looking interior. The magic is to be able to complete the project in a cost effective manner which meets the budget, time frame and projected rental rates on which the entire project was based and approved. If the rental rates and costs are not kept in line and achieved, the project would be a failure with the client not achieving the original goal.
For further information please contact Malcolm Karl directly on 604.657.1940