Upfit Definitions

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Dear JR Mabe,

I am opening up an office in North Carolina and have spoken with several general contractors about making the space usable for my business. The building owner and the contractors keep using terms that I do not understand--I wish I had an "English to General Contractor Dictionary."

Is there a place I can go to look up the definitions for these commercial contracting words and phrases?

Al G. Huntersville, NC

Dear Al -

There are some resources available for contracting definitions, however, they probably are more than you need. I have compiled a few of the common tenant upfit and commercial constructions terms below. If you have a specific question on a term, I would be happy to get a definition to you right away.

-JR Mabe

Above Grade - The portion of a building that is above ground level.

Backfill - Filling in an excavated area; or in carpentry, the process of fastening together two pieces of board by gluing blocks of wood in the interior angle.

Balusters - The small vertical members in a railing between a top rail and the stair treads or a bottom rail.

Bearing Wall - A wall that supports its own weight and the vertical load above it.

Drywall Construction - A type of construction in which the interior wall finish is applied in a dry condition, generally in the form of dry sheet materials or wood paneling (not plaster).

Façade - The front of a building. Also, the decorative front of a building.

Face Brick - Brick made especially for exterior face use, usually a special color, texture and size.

Finish Carpentry - Usually done near project completion, and to "finish" the space. Includes the hanging of interior doors, installation of molding, molding, chair rail, and any "built-ins."

Fire Wall - A wall built to restrict or prevent the spread of fire in a building.

General Contractor - A contractor responsible for all aspects of construction of a building or renovation.

Hazard Insurance - Insurance for a building while it is under construction.

Insulation Board -  A firm structural building board made of coarse wood or cane fiber.

Joint Cement - A powder that is mixed with water and used for joint treatment in gypsum-wallboard finish, ( spackle).

Nonbearing Wall - A wall supporting no load other than its own weight.

Outrigger - An extension of a rafter past the wall line.

Partition - A wall that subdivides spaces within a building.

Reinforced Concrete - A combination of steel rebar and concrete.

Tenant Upfit - The "fitting" of a newly acquired/rented or designed space to accommodate the tenant's specific needs.

Dear JR Mabe,

I have bought a franchise and everything is set-up in the restaurant the way I need--in a rough fashion: walls, doors, windows, kitchen, etc. But next month the franchise will be shipping all of the fixtures and artwork, and wall signs.

I need to know if you can do the fixture installation and set-up of these important pieces of my new business.

Jake L. Charlotte Franchise Owner

Dear Jake,

Congratulations on your new franchise, and best wishes for much success. It is common for well established franchises to provide artwork, decorations, signs and fixtures to a new franchise owner. Sometimes they will provide a plan for the owner, and some times they don't. Either way we can provide turnkey service to install franchise-supplied fixtures, artwork, etc.

Fixture installation and set-up can be done on a quick turn-around time if necessary, but it is important to contact us as soon as possible to schedule an appointment to get a quote. Contact us today and we will get started on your franchise set-up.

JR Mabe
Franchise Set-up and FIxture Installation in North and South Carolina

Dear JR Mabe,

 

I recently bought a small commercial space in Charlotte. I am getting it ready to prepare to rent out the units and I need to know what I need to consider before I start this process.

 

Where do I start?

 

Brian M, Charlotte, NC

 

Dear Brian,

 

As a commercial property owner, looking to rent out units, there are several things that you need to consider and do before you can start showing the spaces to potential tenants.

 

Your new tenents will want to to move in without thinking about doing any kind of construction--but fact of the matter is, many will need to do some kind of tenant improvement or "upfit" depending on the kind of business that they have. 

 

The first thing you will have to consider is the types of businesses that you would like to see in the property. Are you thinking of office space, medical office, retail or restaurant? Or a combination. This will determine how you should configure the spaces, and what your investment will be, depending on the existing space.  

 

Generally, the best thing to do is to set up your space so that it is as close to "ready to move in" as possible, but generic enough that as many businesses as possible could move in. This is called a "vanilla box" or "vanilla shell" and it should have a finished ceiling (usually acoustical), ready-to-paint walls, wall outlets and switched ceing outlets, a handicap accessible bathroom, finished handicap accessible storefront/entance and sealed concrete/carpeted floor, and heating and A/C.

 

Your incoming or prospective tenants may want to add (or remove) walls, change the floor coverings and lighting fixtures. Other more minor improvements will include furninshings, shelves, counters, and displays. These are all things that they may ask you to do as a condition of the lease, or you may require that they pay for these. Your attorney can work out the best way for you to handle these issues.

 

We wish you the very best with your new space and hope that you get it filled with many great new tenants soon. If you need any assistance with upfits, please contact us. We look forward to hearing from you soon.

 

JR Mabe

Tenant Upfit Specialists

 

What is a Build-Out?

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Dear JR Mabe,

I have heard the term "build-out" used a couple times as I have been looking at locations for a business I am starting in Charlotte. What does this mean?

Greg H., Charlotte


Dear Greg,

Congratulations on your new business. I wish you the best.

Many office and retail buildings start out with tenant spaces consisting of what is called a "vanilla box" -- basically four walls and a door. This space is left empty and plain, because each tenent is going to need a specific configuration, so the space will be finished after the requirenents are in.

The process of finishing this empty, plain space is called the "build-out." The tenent and landlord may have conditions written into the contract such as:

(1) What improvements will be made?

(2) How long will the updates take? 

(2) Who will pay for these improvements?

(3) WIll the tenet or landlord oversee the updates? 

(4) Are the updates required to stay or be removed after the tenent vacates the space?

 

I hope this answers your questions, feel free to contact us to set up an appointment to discuss your new business' space.

JR Mabe
Commercial Construction Specialists

Work Letter for Build-Out

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Dear JR Mabe,

I am working with an agent to find the right space for a franchise I am buying, (in Huntersville, NC). My agent said we were waiting for the work letter. What does this mean?

Simon K,, Huntersville

Dear Simon,

I am sure you will have great fortune in Huntersville with your new franchise. It is a great area.

A work letter is just letter signed by the commercial landlord and you as the tenant which describes the agreed upon issues pertaining to the build-out of the space you will be renting. It is always a good idea to have your commercial real estate attorney go over this and the lease agreement before you sign anything.

Sometimes the build-out work letter is a separate document from the lease, and sometimes it is just an attached page.

We have done work in Huntersville on several franchises and would love the opportunity to work with you on your build-out. Please contact us at JR Mabe and we can take a look at your project!

Best Regards,
JR Mabe

What is a Vanilla Box?

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Dear JR Mabe,

I keeo hearing this term: "Vanilla Box" as I look at spaces for my new office. What is a vanilla box? I am assuming it is an empty space?

Alan P. Charlotte

Dear Alan,

You are essentially correct, a "vanilla box" is an empty space, with little or no internal walls or features. I think that too often we use these terms and forget that the tenents might not fully understand what we mean.

You might also hear "warm vanilla box" as well. Your responsibility in looking for a new space is knowing specifically what the landlord means when these terms are used -- you are right to ask questions and talk to your agent and attorney as you go through this process.

As you look at each "vanilla box" consider how they will need to be built-out to meet your needs. Also be sure to ask who will be paying for the build-out (you or the landlord) and what restrictions there are.

Best of luck, and please contact us when you are looking at hiring a commercial contractor for the build out!

JR Mabe - Build Out Specialists

What is LEED Certification?

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Dear JR Mabe,

I have heard that you do LEED Certified Construction. Can you explain to me, what is LEED Certified mean?

Jennifer, Charlotte, NC

 

Dear Jennifer,

There have been a lot of questions about LEED and Green building lately, and this is something that we take significent pride in being able to offer LEED Certified Construction.

LEED stands for Leadership in Energy and Environmental Design. When a building is constructed to meet the LEED certification standards, the building becomes an eco-friendly structure in which people are able to work in a healthy environment.

According to the U.S. Green Building Council, there are both environmental and financial benefits to earning LEED certification including the lower of operating costs and increased asset value, the reduction in waste sent to landfills, conservation of both energy and water, reductions of greenhouse gases, and possible incentives like tax rebates.

Sustainability is of great concern these days and we take seriously our client's commitment to Green Building. 

J.R. Mabe.
General Contractors
North and South Carolina

 

 

 

Franchise in Fort Mill -- Upfit

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UnderConstruction2sm.JPGDear JR Mabe,

I am opening up a franchise in Fort Mill SC, and I have chosen a space in a new retail building. I have specific requirements I need to fulfill, as well as restrictions by my landlord. Do you have experience working with these franchise - tenant - landlord situations?

Sally K - Fort Mill, SC

 

Dear Sally,

Just recently we have worked with Quiznos, Great Clips and Meal Makers... (check out our portfolio) all situations similar to you. We work on many upfits for franchise owners and understand your unique needs. Our first step would be to inspect your space and get the requirements from the franchise as well as the landlord. From there we can work on the estimate and design. Please give contact us and we can get you set up.

JR Mabe
General Contractors
North and South Carolina

  UnderConstruction1sm.JPGDear JR Mabe:

I am going to need a general contractor for an upfit project in Charlotte and I know that I need to have someone who is insured, but what kinds of insurance should a general contractor have?

Barry W. Charlotte

 

Dear Barry,

All general contractors need to provide proof of these insurances:

    1. General Liability
    2. Workers Compensation Insurance
    3. Builder's Risk Insurance (covers your structure from loss while in the building process)
    4. Auto Insurance - Auto insurance is required if they are driving vehicles on your property, or with your property in their vehicles.
    5. Assurance that all Subcontractors are Insured  -- Many general contractors will hire a subcontractor to do all or some of the work (i.e.)

There are of course, other things to consider, like proof of financial stability, safety record and references, but insurance is a very important factor to consider. If you would like any more information on what you should expect from your general contractor, feel free to contact us at JR Mabe.

JR Mabe
General Contractors
North and South Carolina

Dear JR Mabe,

I have just rented a large empty space for my small software business in Charlotte. The property management company leased it to me with the understanding that I wanted to do a build-out, but that is my responsibility according to the terms of the lease. Currently we have 5 employees, but hope to expand, so I need a few closed door offices, a conference room, reception area, and small server room including an open area for cubicles as well.

Can you tell me what my next step is? We are hoping to be up and running in this new space by the first of the year.

Frank S - Charlotte.

Dear Frank,

You have been given the "vanilla box" and now we need to make it yours! Your first step in what is called the "tenant buildout" is to talk to the property management company about your build-out plans if you haven't already. They need to know that you will be adding offices and other rooms and electric and maybe plumbing. They may have restrictions, or suggestions, and it is always best to start with them first. They may also have preferred vendors or restrictions on who you can work with.

The next step is to bring in 2-3 contractors to do estimates. The build-out that you describe is pretty standard, but a contractor will want to come in, get the square-footage and general layout. If you are doing something a little more elaborate, you may want to talk to a design architect as well, (let us know if you need a recommendation. After the quotes you should choose your vendor, determine your timeline and your build-out will begin. Remember the more information you give the contractor, the more likely your quote will be accurate. I am sure you don't want any surprises! So be specific.

We work in your area, so if you would like a quote, please let us know--we would be happy to quote your build-out.

Best of luck and feel free to contact us anytime.

JR Mabe