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Why a Pre-development Program is Important for a Tenant Finish-out Project
Franchise owners and retail center tenants need their locations to open quickly to capitalize on potential revenue. Before you begin your finish-out project, it’s imperative to have a pre-development program for your project.
A pre-development program is a written outline of the work and services necessary to complete a tenant finish-out project. It covers everything that is impacted by the landlord’s regulatory jurisdiction and landlord criteria – from the concrete through the partitioning, equipment and finishes.
Every regulatory jurisdiction (city or county permitting agency) has its own language, customs and expectations when it comes to commercial real estate development. A tenant’s program or a corporate franchise program needs to be translated into that local jurisdiction’s ability to understand prior to the submission of drawings for planning review and permitting. A turnkey solutions partner like Vision+Architecture Studio can quickly and expertly ensure the proper pre-development program is written and presented to the permitting entity.
The consequences of not having an adequate pre-development program and meetings with the jurisdiction and landlord can be costly. Expect the planning review and permitting entity to more harshly judge the architecture and engineering documentation and apply the more stringent application of the code to resolve what they don’t understand. This can result in requiring fire suppression systems, grease management, ventilation or other expensive applications to a finish-out project that may not necessarily need them.
Project Example:
For example, a franchise chocolate factory going into a shopping mall initially requested permits from the city based on the architectural drawings alone. According to the drawings, the space was assumed to be a restaurant, which would require the installation of grease management and fire suppression systems – costly additions that aren’t necessary for this type of business. With a pre-development program the franchise owner would have saved time and eliminated any misinterpretation of the drawings and plans for the space. By planning ahead and ensuring a pre-development program is in hand, a finish-out project can stay on budget and expedite scheduled completion. In this case, not having a pre-development program would have cost the $180,000 project an additional $20,000 in unnecessary expenses.
An added benefit of having a pre-development program is the ability to engage the property owner or landlord early in the process. This collaboration can expedite permitting and construction and minimize expenses, leading to a quicker opening and revenue generation. The property owner may waive some of the landlord criteria if they understand the project early and may even partner with you in your negotiations with the city or permitting agency. It’s a mutually beneficial endeavor – the landlord wants the tenant space to be occupied, they city wants the property taxes from the landlord, and you want to open quickly and generate revenue from your project.
At Vision+Architecture, we have a team of development advisers and experts who specialize in streamlining the documentation phase and helping to create your pre-development program. We bring your franchise and quick-to-market projects online so you can see revenue faster.
