What Every Commercial Broker Should Know About Construction & Design

Transcription

1 What Every Commercial Broker Should Know About Construction & Design

2 RCA Presentation 12 February 2013 The Site Industrial Buildings Overview Office Buildings Overview Renovations Overview Tenant Improvements Overview

3 The Site: Where it All Begins

4 Aerials, Surveys and Plats Google Aerials: Great visualization tool but please don t ask us to design from them! Excellent for understanding context, access etc. Survey: Establishes the Legal Description, Metes and Bounds, Easements, and Existing Improvements. Please ask your Owners for Autocad surveys. PDF s are not accurate most of the time and they can t be scaled! Plat: Similar to a survey but is primarily a tool for establishing infrastructure impacts Is especially important in Broward County

5 Zoning Establishes Land Use and development parameters for sites with respect to: Permitted Uses, Conditional Uses, etc. Building Setbacks Building Coverage (footprint area divided by site area as %) Floor Area Ration (total building area divided by site area as %) Building Height Parking Requirements: required by use, design standards, etc. Landscaped Open Space Requirements and Procedures for Site Plan Approval. Critical component in overall project schedule. Can be 3 to 12 months for approval. They are all important but Coverage, FAR and height are the Big 3 for Commercial Development!

6 Zoning Analysis Tool to document zoning requirements prior to planning the site. Item Requirement Reference Comments Municipality/Jurisdiction City of Ft. Lauderdale Existing Zoning Designation GAA Proposed Zoning Designation GAA Use(s) Proposed office, industrial, retail, residential Use(s) Permitted office, R&D, many aircraft-related uses, regional wholesale and distribution, Conditional Use/Rezoning Required retail and residential uses Minimum Lot Area none B Minimum Lot Frontage Building Setbacks Front 100' C.1.b Rear per FAA Regulation no. FAR Part C.1.c Side FAA and city commission C.1.d Side Street Additional Setbacks due to height Height Permitted FAA No. FAR Part A Building Area Permitted 211,560 square feet of office use maximum Plat Amendment Building Coverage Permitted Landscape/Open Space Required Parking Space Size Standard 8'-8" x 18'-0" A Compact Handicapped 12'-0" x 18'-0" A Parking Drive Aisle Width 24' A Parking Requirements Aviation mfg, sales, repair, service 1/1000 gsf floor area plus 1/company vehicle C Office 1/250 gsf C Warehouse/Storage 1/800 gsf C Manufacturing/Industrial 1/800 gsf C Retail 1/250 gsf C Residential varies according to residential type. Plan on 2/unit C Restaurant 1/100 gsf < 4,000 gsf. 1/30 sf customer service area + 1/250 gsf C Hotel 1/Room C Mixed-Use Reduction Permitted? Possible by separate application Parking Lot Landscaping % of lot area required 20% of VUA A.1 Interior parking lot landscaping 30 sf/parking space and loading berth A.3 none required, subject to interior pkg lot Landscaped Strips Betw. Rows landscaped area reqt Commercial/Retail uses not permitted without County Commission approval. Robert: can this be processed with mixed use site plan approval? VUA = Vehicular Use Area. Extends max of 20' from parking lot area. # of Parking Spaces Continuous 10 max A.4.a 20 max with landscape island with increased 1'/extra pkg space > 10 Landscaped Island Size 8' x 13'-6" min A.4.a Parking Setbacks R.O.W.'s 5' min, 28' max, 10' average A.2.a only 10' can be included in VUA Common Property Lines 2.5' min A.2.b Buffer Requirement

7 Site Feasibility Study Quick planning study to determine the development potential for a site based upon the zoning parameters. Generally several alternatives are prepared to give the Client options and evaluate multiple factors. Access Exposure/Visibility Views Context/Relationship to Neighboring Properties Internal Relationship between Buildings, especially Mixed/Multi-Use Phasing Development Flexibility

8 Industrial Overview

9 Bulk Distribution Most Prevalent in Miami Dade County Design Standards: Building Depth: 180 to 250 Building Size: 100,000 to 200,000 SF Building Height: 30 Clear! Bay Spacing: 54 Wide by 40 to 50 Deep Plus 60 Speed Bay LEED? Designed to LEED Standards, but Not Certified Truck Courts: 120 to 130 Single, 180 to 200 Shared Parking Ratio: 1.0 to 1.3 Spaces/1,000 SF Tenant Improvements: 5% to 10% Office Site Coverage: 40% to 50% Net Site Area Schedule: Design & DRC: 4 to 6 Months (1 W/O DRC) Construction Documents: 6 to 8 Weeks Permitting: 3 Months +/- Construction: 9 to 10 Months Construction Costs: Shell and Site: $32.00 to $35.00/SF

10 Light Industrial More Prevalent in Broward and Palm Beach Counties Design Standards: Building Depth: 120 to 180 Building Size: 60,000 to 120,000 SF Building Height: 24 Clear Bay Spacing: 40 Wide by 30 to 40 Deep Truck Courts: 110 to 120 Single, 160 to 180 Shared Parking Ratio: 1.2 to 1.5 Spaces/1,000 SF Tenant Improvements: 10% to 20% Office Site Coverage: 35% to 40% Net Site Area Schedule: Design & DRC: 4 to 6 Months Construction Documents: 6 to 8 Weeks Permitting: 3 Months +/- Construction: 7 to 9 Months Construction Costs: Shell and Site: $50.00 to $55.00/SF

11 Office Overview

12 Garden Office Generally Suburban Locations Design Standards (Last Generation): 25,000 to 30,000 SF Floor Plate 75,000 to 120,000 SF 45 to 50 Glass to Core 110 to 120 Building Depth Tilt-Up Concrete Construction Parking Ratio: +/- 4 Spaces/1,000 SF. Generally Surface Parked FAR: 32% to 38% G/R Factor: 1.05+/- R/U Factor: 1.08 to 1.10 Full Floor, 1.12 to 1.15 Multi-Tenant Floor LEED Certified ( Certified to Gold ) Future? Schedule: Design and DRC: 4 to 6 Months Construction Documents: 10 to 12 Weeks Permit: 3 to 4 Months Construction: 10 to 12 Months Construction Costs (2008): Shell, Core and Site: $85 to $100/SF

13 Urban/Suburban Office Dense Suburban Locations Design Standards: 25,000 to 40,000 SF Floor Plate 100,000 to 200,000 SF Four to Six Stories (Below High Rise) 45 to 50 Glass to Core10 to 120 Building Depth Generally Tilt-Up Concrete with Curtainwall and/or Metallic Accents Parking Ratio: +/- 4 Spaces/1,000 SF. Structured Parking. FAR: 40% to 100%+ G/R Factor: 1.05+/- R/U Factor: 1.08 to 1.10 Full Floor, 1.12 to 1.15 Multi-Tenant Floor Schedule: Design and DRC: 5 to 7 Months Construction Documents: 12 Weeks Permit: 3 to 4 Months Construction: 12 to 14 Months Construction Costs (2008): Shell, Core and Site: $90 to $115/SF Parking Structure: $10,000 to $12,000/Space

14 Urban Office Each is Unique Generally Integrated Parking Structure No Tilt Wall! Construction Costs: Shell, Core and Site: $120 to $150/SF

15 Renovation Overview

16 Renovations Each is Unique Can Re-position Properties in Excellent Locations Saves Money over Replacement Cost Green (Saving the Building/Less Landfill), However there is Risk of the Unknown Reward of Seeing The Ugly Duckling become The Swan LEED EBOM

17 Tenant Improvements Overview

18 Tenant Improvements: Office Have a System! Time kills all deals Landlords and Brokers: Have base building drawings in Autocad format. If no record drawings hire a measuring svc. Keep Tenant Master Drawings Workletter established with Pricing from the GC to avoid delays with bidding and value engineering changes Tenant Rep Brokers: Establish the Tenant s Program Schedule: Space Planning: 2 to 8 weeks (depends on size, complexity and decisiveness) Construction Documents: 2 to 6 weeks Permit: 1 to 3 Months Construction: 8 to 16 Weeks Construction Costs: First Generation: $40 to $45/SF+ Second Generation: $10 to $25/SF (But it depends )

19 Tenant Improvements: Industrial Same Comments Apply as in Office Accessory Use: 10% No Full Height Separation Wall between Office and Warehouse occupancies Mezzanines: Need ADA access unless Storage Use Only Schedule: Space Planning: 2 Weeks (But depends on Tenant) Construction Documents: 2 to 4 Weeks Permit: 1 to 3 Months Construction: 8 to 12 Weeks Construction Cost: Bulk Distribution (30,000 SF Avg. Tenant, 10% Office) Office (3,000 SF): $60 to $65/SF Warehouse (27,000 SF): $2 to $3/SF Total (30,000 SF): $8 to $9/SF Light Industrial (10,000 SF Avg. Tenant, 10% Office): Office (1,000 SF): $85 to $100/SF Warehouse (9,000 SF): $2 to $3/SF Total (10,000 SF): $10 to $13/SF

20 Thank You!

21 Construction & Design Symposium: What Every Commercial Broker Should Know Eric D. Rapkin February 12, 2013

22 Preliminary Considerations When negotiating transactions, brokers should have a complete understanding the client s business needs and the economics of any potential deal. What type of transaction is the client looking for (buy vs. lease; build-to-suit; self-build)? For leases: Components of base rent. Operating expenses, taxes, and insurance. Sales tax. LOI considerations (the art and the science). Managing expectations.

23 Design and Construction Identify the team; bring in trusted professionals early in the process. Both parties should have construction professionals involved, not just the party responsible for the actual construction. New construction vs. renovation. Inspections of existing improvements (hvac, ADA, etc.). 40-year Recertification requirements. - Miami-Dade and Broward require 40 Year recertifications of most commercial buildings, condos, and apartments. - Inspection of structural condition and electrical systems by a registered engineer or architect.

24 Construction Contracts Types Lump Sum, Cost Plus, GMax (GMP). AIA forms. Certificate of Occupancy vs. Certificate of Completion. Payment and performance bonds.

25 BOMA Standards What is BOMA International? Building Owners and Managers Association. Private, not governmental, organization. Measurement Standards. Office; Retail; Industrial. ANSI (American National Standards Institute). Identify exactly which standard is being used. Office: 2010 vs standards. Industrial: 2012.

26 Insurance Allocation of risk. Construction. Builder s Risk. Liability. Lease. Liability. Property. Waiver of recovery/subrogation.