Whether you’re working with a tenant fit-out allowance from your landlord or shouldering the cost of fitting out your space yourself, budget matters. Using your fit-out budget wisely can increase your potential ROI on the space, helping you to achieve greater profitability more quickly.
These three tips will help you establish and maintain a budget that will position you for a greater ROI on your tenant fit-out:
- Start out with clearly defined, clearly communicated budgetary parameters.
The better an understanding you have of your budget going in—and the more clearly it is communicated to all parties, from designers and architects to contractors—the less likely you’ll be to be swayed by suggestions or ideas that don’t match your needs and limits. By establishing your budget up front with decisiveness and transparency, you lay the foundation for a project that can be managed wisely and turn a greater profit.
- Maintain regular budgetary oversight throughout the course of the project.
While it is a rare project that proceeds from beginning to end without any unexpected issues or changes coming up, a prudent budget will have some provision for these contingencies. Just as important, wisely using your budget means being vigilant in monitoring the usage of your funds. When you maintain regular oversight of your budget, you can ensure that you stay on track—and that you have the ability to correct course quickly if needed.
- Understand the difference between your needs and your wants.
In a recent post we talked about the difference between must haves and nice to haves. Knowing the difference between what is absolutely essential for your fit-out and what would simply be nice to incorporate will help you decide which areas to spend more on—and which you can take a more minimal approach to—in order to get the most value for your money. You may decide, for example, that you can cut costs by repurposing existing fixtures instead of springing for new, custom ones. On the other hand, you may decide that purchasing energy efficient systems and appliances is more of a must have than a nice to have, as over time your ROI will benefit from lower energy bills.
There are many ways to increase your potential ROI with your tenant fit-out, but following these three tips on wise use of your budget will give you a great head start. At A.F. Alber, we have 30+ years of experience helping clients save money at all stages of their fit-out projects. Talk to us today about how to make your next fit-out one that positions you for success!