What Every Commercial Broker Should Know About Construction & Design

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What Every

Commercial Broker

Should Know About

Construction & Design

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F O R B E S A R C H I T E C T S

F O R B E S C O N S T R U C T I O N

and Development

John R. Forbes, AIA

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Design

Team

F O R B E S A R C H I T E C T S F O R B E S C O N S T R U C T I O N Other Consultants Architect Civil Engineer Landscape Architect Electrical Engineer Mechanical Engineer

(Air Cond. and Plumbing)

Structural Engineer

Owner-Tenant Real Estate Legal

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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

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Tenant

Standards

F O R B E S A R C H I T E C T S F O R B E S C O N S T R U C T I O N

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

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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

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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

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Zoning

Districts

Requirements are Different

Lot Coverage – Building Setbacks – Parking Setbacks – FAR – Open Space

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

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Lot Coverage

F O R B E S A R C H I T E C T S F O R B E S C O N S T R U C T I O N 25% Lot Coverage 50% Lot Coverage 100% Lot Coverage

Same site and density with different

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Parking

Requirements

Parking – Code Required

Minimum quantity of spaces required by local ordinance (for various uses)

Sizes of spaces required by local ordinance

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

Parking – Market

Minimum based on competitive projects and type of specific project Usually this is what we design toward

Office – 1:250 gsf (4:1,000)

Industrial – 1.25:1,000 gsf

Retail – 5:1,000 gsf

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ADA Parking

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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

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ADA

Requirements

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ADA

Clearances

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Don’t Try This

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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

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Blame it on

Florida

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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

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Building

Department

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

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

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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 16-20 weeks Construction 8-12 weeks 12-20 weeks 26 weeks +

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Construction & Design

Symposium: What Every

Commercial Broker Should

Know

Eric D. Rapkin

[email protected]

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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).

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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

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Construction Contracts

•

Types – Lump Sum, Cost Plus, GMax (GMP).

– AIA forms.

•

Certificate of Occupancy vs. Certificate of Completion.

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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. 1996 standards.

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Insurance

•

Allocation of risk.

•

Construction.

– Builder’s Risk. – Liability. •

Lease.

– Liability. – Property. – Waiver of recovery/subrogation.