What Every Commercial Broker Should Know About Construction & Design
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1 What Every Commercial Broker Should Know About Construction & Design
2 John R. Forbes, AIA and Development
3 Design Team Legal Owner-Tenant Real Estate Architect Structural Engineer Mechanical Engineer (Air Cond. and Plumbing) Electrical Engineer Landscape Architect Civil Engineer Other Consultants
4 Contract Documents What are they? Plans, Specifications, Construction Contract, General Conditions, Instructions to Bidders, Addenda Why are they needed? Define what the Contractor is going to do Usually means better pricing Required for permitting Change Order = Changes in the Work after the contract is executed Good Plans = Less Change Orders
5 Tenant Standards Office Tenant Improvement Class A Tenant Improvement Class B Glass Limited None Heights 9 + Ceilings 8 + Ceilings Lighting Indirect Parabolic Carpet $15 psy installed $12 psf installed Base Carpet Vinyl Doors 3 wide x 8 high 3 wide x 6-8 high Frames Aluminum/Metal Metal/Wood
6 Office Buildings Next Generation Office Buildings Energy Efficient Cheaper to Operate Shade Glass from Direct Sunlight Low E or other efficient Glass Air Conditioning Units Gray Water for Irrigation Better Design for Users Higher Floor-to-Floor Heights Allows Taller Ceilings in Office Areas Less Walled Offices More Open Space Increased Glass Area in Suburban Markets Mixed Use and People Spaces Smart Technologies
7 Zoning Lot Coverage Essentially the building footprint Expressed as a maximum % by code Setbacks Where the footprint may be located on site Usually restricts at perimeter areas Floor Area Ratio (FAR) Density allowed on a site Expressed as a multiple of the site area FAR of 3.0 x 43,560 site = maximum 130,680 of building area Open (Landscape) Space Expressed as a minimum % by code
8 Zoning Districts District AU BU-1 BU-1A BU-2 BU-3 GP GU IU-1 IU-2 IU-3 IU-C Use Agricultural Business Business, Limited Business, Special Business, Liberal Government Property Interim District Industrial, Light Manufacturing Industrial, Heavy Manufacturing Industrial, Unlimited Manufacturing Industrial, Conditional Requirements are Different Lot Coverage Building Setbacks Parking Setbacks FAR Open Space
9 Lot Coverage 25% Lot Coverage 50% Lot Coverage Same site and density with different Lot Coverages 100% Lot Coverage
10 Parking Requirements Parking Code Required Minimum quantity of spaces required by local ordinance (for various uses) Parking Market Minimum based on competitive projects and type of specific project Sizes of spaces required by local ordinance Usually this is what we design toward Office 1:300 gsf Industrial 1:1,000 gsf first 10,000 gsf; 1:2,000 thereafter Retail 1:300 gsf Restaurant 1:50 sf patron area Office 1:250 gsf (4:1,000) Industrial 1.25:1,000 gsf Retail 5:1,000 gsf Restaurant 1:50 sf patron area
11 ADA Parking
12 Codes Codes are the bare minimum allowed, they are not a design standard Florida Building Code including accessibility mandated by state and updated every two years Florida Fire Prevention Code mandated by state; modified version of NFPA 1 and 101 Many other Standards and Ordinances
13 ADA Requirements
14 ADA Clearances Reception
15 Don t Try This
16 ADA Compliance The goal is allow this driver complete access to everything - Public Way Parking Sidewalk to entrance The front doors Accessible Route Elevator Controls Door Clearances Restrooms Signage
17 Blame it on Florida
18 Building Permit When is it required? Anytime electrical or plumbing is involved Generally anytime other than just changing finishes Any changes to the building envelop or exterior
19 Building Department Submission Asbestos report or affidavit required Electronic for less than $100,000 projects (Miami-Dade County) If in Miami-Dade, plans are submitted to Building Department and they route them to other agencies In smaller municipalities, you have to route them yourself Plan Review (Miami-Dade) DERM 1-2 weeks Fire Department 1-2 weeks Building Department 1-2 weeks Overtime review is available Permit and Fee Allow 2% of construction cost Permit is good for 180 days Water and Sewer Fees Calculated by use and area
20 How Long? Phase/Project Type Tenant Improvement Building Renovation New Building Space Plan or Design 1 week 3 weeks 4-6 weeks Plans 3 weeks 6 weeks 8-12 weeks Permit 4-6 weeks 6-8 weeks weeks Construction 8-12 weeks weeks 26 weeks +
21 Thank you!
22 Construction & Design Symposium: What Every Commercial Broker Should Know Eric D. Rapkin December 4, 2012
23 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.
24 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.
25 Construction Contracts Types Lump Sum, Cost Plus, GMax (GMP). AIA forms. Certificate of Occupancy vs. Certificate of Completion. Payment and performance bonds.
26 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.
27 Insurance Allocation of risk. Construction. Builder s Risk. Liability. Lease. Liability. Property. Waiver of recovery/subrogation.
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