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— Property Management Quarterly — July 2017

www.crej.com

Construction Trends

W

hat in the world is going

on with office space?

What does “traditional

office” even mean any-

more? In the last decade,

we’ve experienced significant

changes to the construction style of

office space, and the emergence of

alternative workspaces look like the

changes have just begun.

As a tenant improvement general

contractor, we’ve had front row

seats to watch this transformation.

We saw the traditional office envi-

ronment trend toward open con-

cept. We then watched office build-

ings experiment with open ceilings,

raw floors and exposed walls. Now

the collaborative

work environment

seems to be incor-

porating these fea-

tures and adding

even more twists.

The exposed con-

cept, often referred

to as industrial,

began in the 1960s

with the repurpos-

ing of old factories

for residential lofts

and apartments.

Rather than focus

on the conceal-

ment of the bones of a building, this

new trend focused on the inherent

functionality over

form of factory

buildings, present-

ing a new aes-

thetic that tran-

scended residen-

tial and became

quite common

in commercial

design. Retail was

first to join the

trend. I remember

when restaurants

started moving

toward this design

and thinking cyni-

cally to myself,

“Well, that’s one way to cut remodel

costs.” However, after years of esti-

mating and constructing industrial-

designed spaces, it is very apparent

this style often costs significantly

more.

The inevitable question is: How

much more? This is difficult to

quantify as each project has many

different factors at play – ever heard

a contractor say that? – but since

we all want numbers, I’ll reluctantly

oblige.

Let’s first set a benchmark of $30

to $40 per square foot to remodel

a traditional space staying within

the same style. To convert this same

space to an exposed concept could

increase construction costs by $10

to $30 per sf. Many wonder why get-

ting rid of walls and ceilings would

cost more.

Construction of raw space isn’t as

simple as gutting the walls and ceil-

ings. What ends up being exposed

needs to be clean, safe and visually

pleasing. Since the ceiling is com-

pletely exposed, abandoned pipes

and wires must be removed back to

their source. Duct work often will be

upgraded to spiral ducting. Lighting

fixtures can no longer lay into ceil-

ing grid, so new fixtures are needed

throughout. Sprinkler heads need

to be turned up to cover the ceiling.

Often, the newly exposed ceiling

elements are fully painted.

Exposing the concrete floors isn’t

easy either. Carpet glue, tile mor-

tar and mastic must be ground

down and rough surfaces smoothed

over. The surface now needs to

be stained, polished or sealed. If

exposing exterior walls is desired,

the electrical needs to be ran

through conduit. The rooms that do

remain or will be built most likely

need privacy. Soundproofing for

conference rooms, huddle rooms

and IT will need walls to deck or

insulation and sound boots.

After this process is complete

and the raw space is, well, finished,

there are still more elements that

need to be built into this new envi-

ronment to be considered collab-

orative. Kitchens and break rooms

are no longer hidden but instead

are open with islands and bars for

employees to gather. Game rooms,

lounges and huddle rooms are all

deliberately designed within it.

Collaborative workspace isn’t just

a cavernous, empty room; it’s pur-

poseful in its design elements to

encourage natural interaction. The

exclusion of physical barriers like

walls and cubicles plays a big part

in collaborative design.

Alternative workspaces will con-

tinue to evolve, as we have seen

The unexpected cost of constructing empty space

Bob Bergeson

Executive vice

president of tenant

improvement, The

Vertex Cos. Inc.,

Denver

Ashley Combs

Business

development

associate, The

Vertex Cos. Inc.,

Denver

Ryan Mele, Vertex

Exposed ceilings, as seen here at the Blake Street Ballpark Spaces office, often require a lot

of clean up, including abandoned pipes and wires being removed back to their source, spiral

duct upgrades and new lighting fixtures throughout.

Please see 'Bergeson,' Page 28