When is the best time to do tenant improvement or TI work? Well, might I suggest to you that when the economy is tough, you’ll find yourself with more competitive bids from less-than-busy construction companies willing to give you a low price merely to stay busy and keep their guys working?
You see, not long ago I was at Starbucks and I was talking to the wife of a construction company owner who told me that they had lost their home, and were trying to keep their business alive and keep their guys working, doing anything to stay afloat. They were taking little jobs, and anything they could get until the economy returned. Okay so let’s talk.
We’ve all heard the government facts and figures that state that the economy is getting better, but in reality for many people in many industry sectors that doesn’t appear to be the actual reality. Still, there is always opportunity and chaos for someone if you look hard enough. Small Business owners are also going through a tough time just as the construction companies are. They don’t have the money they need right now to expand their business, or do improvements, but perhaps both can help each other out at this point.
A small time construction company with a decent reputation that is hurting for cash flow might be willing to do the work at near cost just to stay in business, meaning a small retail store might be able to get a once in a lifetime deal on their construction. As the economy returns to firing on all cylinders again, providing it does actually recover, it won’t be this inexpensive in the future. Those high costs of construction and tenant improvements will go back up just like everything else in our economy. Why not take advantage of all the chaos and controversy in the construction sector?
Interestingly enough the construction workers may actually do a better job because they are not rushed, and they don’t need to complete job to get onto something else, they don’t have any other work. They might also do the best job possible, hoping for referrals at this point. So I recommend? If you have a small business, this might be the time to do a build-out, a little TI, or some expansion. What you need to do is sketch out a plan of exactly what you want, in great detail, and offer the job to five or six construction companies which are local.
You don’t even have to take the lowest price because most of the bids will come in lower than you would’ve expected due to the economic pressure in the construction sector. Just pick the best one, one you can afford, and you will have accomplished a great task while your business is slow, before things return. The worst time to do construction is when lots of customers are coming to your store every day and you’ve made a mess of I due to all the construction. Do you see that point? Please consider all this and think on it.