commercial tenant improvement design and...

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PROVIDED BY | Seattle Office of Economic Development Seattle Chinatown ID Preservation & Development Authority PRESENTED BY | Henry Walters and Miriam Hinden ATELIER DROME architecture + interior design City of Seale, Office of Economic Development Commercial Tenant Improvement Design and Permitting

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Page 1: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

PROVIDED BY | Seattle Office of Economic Development Seattle Chinatown ID Preservation & Development Authority

PRESENTED BY | Henry Walters and Miriam Hinden ATELIER DROME architecture + interior design

City of Seattle, Office of Economic Development

Commercial Tenant Improvement Design and Permitting

Page 2: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

THIRD WORKSHOP IN FREE COMMERCIAL LEASING SERIES FOR SMALL BUSINESS OWNERS IN CHINATOWN / ID

October 2017 - Pipeline DevelopmentDecember 2017 - Leasing Process Overview (Susanna Tran, West Coast Realty)April 2018 - Tenant Improvement Design & Permitting (Atelier Drome)

To come in 2018:• 1-on-1 Design Sessions with Architects• Tenant Improvement & other Small Business Finance• Understanding Commercial Leases

Page 3: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

PRESENTATION AGENDA

KEY PLAYERSCONSIDERING A SPACE Walking the space - things we look for

Questions to askCode considerationsIs it an old building?

THE PHASES OF DESIGN Pre-design Schematic design Design development Construction documents Construction phase servicesSCHEMATIC DESIGN

What we need from youKitchen designBar designDining room designOutdoor seating

CONSTRUCTION COSTSPre-lease / preliminary pricingSystems costsWhat construction costs typically includeWhat construction costs do not typically includeOther important costs to remember

Page 4: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

KEY PLAYERS

Tenant• You!

Tenant’s Real Estate Agent• Represents you and assists with negotiating and preparing the lease

Tenant’s Real Estate Attorney• Helps you to review the Lease to make sure it is fair for you

Seattle Office of Economic Development• Assists small businesses on navigating the requirements and regulations• Helps connect entrepreneurs to small business development resources

Shanti Breznau, CID Business Developer• Helps connect you with property owners, managers and brokers• Provides feedback on business plans and referrals to free small business assistance

services

Page 5: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

KEY PLAYERS

Owner / Landlord• Person or company that owns the Building and is listing the space for rent / lease

Owner’s Agent / Listing Agent• Real Estate Agent representing the Landlord• Assists with negotiating and preparing the lease for the Landlord

Architect / Designer• Henry and Miriam• Your Advocate to listen and translate your dream into a design that can be built• Coordinates other consultants and obtains permit approval

Builder / General Contractor• Person who uses the Architect’s drawings to build your space• Responsible for coordinating many different disciplines & trades (mechanical, electrical,

plumbing, low-voltage, sprinklers, framing, drywall, etc)• In most cases, Mechanical, Electrical and Plumbing are Design-Build

Page 6: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

Considering A Space

Page 7: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

CONSIDERING A SPACE | walking the space - things we look for

Location• Surrounding Uses• Parking

Physical Properties of the Space• Size of the space, ceiling heights• Exposure, orientation• Materials• Deliveries• Accessibility• Storage• Bathroom access• Common area• Pay them rent vs. build out

Life Safety• Exits• Sprinklers• Structure• Code

Page 8: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

CONSIDERING A SPACE | questions to ask

Use of the Space• Existing• Current permitted use• Proposed use• What changes could be required if a change in use is

necessary?Utilities

• Electrical• Gas• Water• HVAC• Plumbing• Garbage

Page 9: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

CONSIDERING A SPACE | code considerations

• Is the building located in a Historic District?• Number of occupants - calculated based on the size and use of the space, not how many

seats you have• Exits - 1 or 2 required, depending on size of space and number of occupants

Page 10: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

CONSIDERING A SPACE | is it an old building?

• Is the space located in a Historic Landmark building?• Will a substantial alteration be triggered?• Structural, life safety & insulation upgrades might be required

Page 11: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

The Phases of Design

Page 12: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

THE PHASES OF DESIGN

NOW

PRE-DESIGN

SCHEDULE OF DESIGN PHASES

SCHEMATICDESIGN

DESIGNDEVELOPMENT

CONSTRUCTIONDRAWINGS

CONSTRUCTION PHASE SERVICES

13-17 WEEKS

6-8 WEEKS

12-16 WEEKS

LEASE SIGNED

Builder signed on

Architectsigned on

CONSTRUCTIONSTARTS

CONSTRUCTIONENDS

PERMIT REVIEWSTARTS

Permits approved

1 2 3 4 5 6 7 8 9 10 11 12

MONTHS

Earliest available building permit intake appointment

(5 month wait)

Not including historic review (+ 4-8 weeks)(use, signage, design)

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THE PHASES OF DESIGN | pre-design

Services• Clarify requirements and parameters• Determine goals and objectives with you• Prioritize wants vs. needs• Research codes and regulations• Document the site and existing structures

Typical Products• Code Analysis• As-built drawings

Result: Research completed

NOW

PRE-DESIGN

13-17 WEEKS

6-8 WEEKS

12-16 WEEKS

LEASE SIGNED

CONSTRUCTIONSTARTS CONSTRUCTION

ENDS

PERMIT REVIEWSTARTS

1 2 3 4 5 6 7 8 9 10 11 12

Page 14: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

THE PHASES OF DESIGN | schematic design

Services• Define space layout and scope• Discuss materials and systems for early pricing• Begin mood board• Test design concepts through sketches and models• Begin to develop the “face” of your business

Typical Products• Pre-Lease design plan• Concept sketches and models• Preliminary pricing guidelines• Mood board

Result Design direction

NOW

SHEMATICDESIGN

13-17 WEEKS

6-8 WEEKS

12-16 WEEKS

LEASE SIGNED

CONSTRUCTIONSTARTS CONSTRUCTION

ENDS

PERMIT REVIEWSTARTS

1 2 3 4 5 6 7 8 9 10 11 12

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SCHEMATIC DESIGN | what we need from you

• What is your concept / big idea?• Your food preparation procedures• List of desired kitchen and bar equipment• Preference on equipment placement

Page 16: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

SCHEMATIC DESIGN | kitchen design

• This is where we START the design of the space• The kitchen must work for you and flow well• Many customers like to see into the kitchen to watch the chef• An open kitchen allows the sights, sounds and smells of the culinary process to

take center stage (and your customers are the audience)• When possible, it is nice to hide some things, like dishwashing• Typically, the kitchen & bar areas take up 30-40% of the size of the whole space

(for really small spaces, they may take up to 50%)

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SCHEMATIC DESIGN | bar design

• The bar can be a way to attract more customers for dinner and make more money• Place bars near the front of the space where possible and close to windows to

show activity to pedestrians• A good size bar could be 8-12 seats and could be larger if the space is larger

Page 18: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

SCHEMATIC DESIGN | dining room design

It is good to offer a variety of seating options:• Tables and chairs allow for a flexible space• Banquettes divide up a large space and offer quick seating options for large

groups• Booths offer a cozy alternative but are not very flexible• Square tables (not round) allow for more flexibility to put tables together for large

groups• Consider opening your dining room to the outside with sliding or folding glass

doors. This allows the sights, sounds and smells of your restaurant to attract customers

Page 19: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

SCHEMATIC DESIGN | outdoor seating

• Allows for more seating during warm months• Makes your restaurant more visible to drivers and pedestrians• Outdoor seating permit is easier than indoor permit• You can serve alcohol outdoors too• Cheapest way to add seats and make more money

Page 20: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

SCHEMATIC DESIGN | kitchen design

Page 21: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

SCHEMATIC DESIGN | kitchen design

Page 22: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

THE PHASES OF DESIGN | design development

Services• Starts when lease is signed• Design is refined with real dimensions, equipment locations and materials• Prepare outline specifications• Coordinate engineers, if needed (Structural, Electrical, Mechanical, Plumbing)• Develop design into technical drawings and details• Monitor permitting process and make necessary changes to obtain permit

Typical Products• Permit submittal drawings• Approved permit drawings• Outline specifications• Revised mood board

Result Building and health permits issued

NOW

DESIGNDEVELOPMENT 13-17 WEEKS

6-8 WEEKS

12-16 WEEKS

LEASE SIGNED

CONSTRUCTIONSTARTS CONSTRUCTION

ENDS

PERMIT REVIEWSTARTS

1 2 3 4 5 6 7 8 9 10 11 12

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bramling cross - floor plan3/32" = 1'-0"

THE PHASES OF DESIGN | design development

BAR SEATING

FRONT DINING

CIRCULATION BAR DISH

ES

MEN WOMENBARTENDER KITCHEN

Page 24: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

THE PHASES OF DESIGN | construction documents

Services• Starts while we wait for City to review permit drawings• Fully develop and finalize drawings• Develop construction details, materials, finishes• Prepare construction specifications

Typical Products• Interiors: Interior elevations, cabinetry design and detailing, lighting and electrical plans,

materials selections and detailing• Exteriors: waterproofing details, exterior building / window / door trim, framing details,

other architectural features.

Result You are ready to start construction!

NOW

CONSTRUCTIONDOCUMENTS

13-17 WEEKS

6-8 WEEKS

12-16 WEEKS

LEASE SIGNED

CONSTRUCTIONSTARTS CONSTRUCTION

ENDS

PERMIT REVIEWSTARTS

1 2 3 4 5 6 7 8 9 10 11 12

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THE PHASES OF DESIGN | construction documents

Page 26: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

THE PHASES OF DESIGN | construction phase services

Services• Starts when construction begins• Review and approve submittals and shop drawings from sub-contractors• Coordinate services of consultants• Monitor construction schedule, cost and contingency• Regular meetings on site with you and builder to answer questions and clarify details• Available to answer questions and provide additional detail• Develop and coordinate final “punch list” items

Result Design is built as you envisioned, and you are ready to open!

Page 27: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

Construction Costs

Page 28: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

CONSTRUCTION COSTS | pre-lease / preliminary pricing

• We are not a builder, so we recommend having a Builder provide preliminary pricing during pre-lease, so you know about how much the project might cost before going to far in the process

• One way of estimating costs early on is “dollars per square foot” ($/sf)• Many experienced Restaurant Builders use $250/sf - $300/sf and for Retail use $150/sf -

$200/sf• Therefore, for a restaurant that is 1,300sf in size, you might expect Construction Cost to

be about $375,000 - $390,000• Builders are very busy and hard to find. Find them early and get on their calendar.

Page 29: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

CONSTRUCTION COSTS | systems costs

• Later on, in the process, a more accurate way to consider costs is to look at specific systems. This level of cost detail requires more design development from the Architect and typically happens after Permit Drawings are completed and again after Construction Drawings are completed.

• Electrical: $20-$25/sf• Plumbing: $2,000/basic fixture• HVAC: $3,000-$4,000/ton• Type-1 Hood: $50,000 - $100,000• Type-2 Hood: $10,000 - $20,000

Page 30: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

CONSTRUCTION COSTS | what construction costs typically include

• Mechanical, Electrical and Plumbing systems and fixtures• Kitchen hoods• Lighting is generally an “allowance” for the tenant to spend on light fixtures• A “Construction Contingency” of between 5-10% (in case of unknown surprises during

construction)• Builder’s Profit and Overhead (can range from 10-20%, depending on the builder)• Make sure the builder includes Washington State Sales Tax too!

Page 31: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

CONSTRUCTION COSTS | what construction costs do not typically include

• Tables & chairs• Kitchen and bar equipment (stoves, ovens, dishwashers, etc)• Walk-in coolers• Audio / video system• Security system

Page 32: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

CONSTRUCTION COSTS | other important costs to remember

• Real Estate Agent fees• Architect / Design fees• Building Permit fees• Health Permit fees• Liquor Permit fees• Kitchen & bar equipment costs• Furniture, silverware, plates, etc.• Business license• Outdoor seating permit• Signage permit and fees• ISRD review fees

Page 33: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

UPCOMING

Design Clinics Upcoming• 1-on-1

Financing• Available, talk to Shanti and OED

Page 34: Commercial Tenant Improvement Design and Permittingcosbottomline-wpengine.netdna-ssl.com/wp-content/... · • Mechanical, Electrical and Plumbing systems and fixtures • Kitchen

CONGRATULATIONS, YOU’RE OPEN!