CREJ

July 2020 — Property Management Quarterly — Page 23 www.crej.com PERSONAL APPROACH. TRUSTED SOLUTIONS. 1800 Glenarm Place, Denver, CO www.mdpeg.com 303.389.0095 LEADERS in Tenant Improvement for Commercial Office, Retail, and Restaurant projects in Denver and the Front Range. Mechanical | Electrical | Plumbing | Life Safety | Smoke Control Progressively managing the construction so you can manage your property Tenant Improvements, Capital Improvements, Common Area Renovations, Spec Suites andWhite Boxes Expedited Budgets, Competitive Pricing, Reliable Team, QualityWorkmanship 720.328.0032 pmgcolorado.com info@pmgcolorado.com 2875W. Oxford Ave #1 Englewood, CO 80110 the elements of casualty, condem- nation or constructive eviction suc- ceeding in a rent reduction remedy is as improbable as obtaining a ter- mination remedy. A tenant’s best option is to discuss its situation candidly with the land- lords with the recognition that land- lords want to see their tenants suc- ceed. The more concrete financial background the tenant can provide to its landlords to explain the ten- ant’s current economic situation, the easier it will be to reach a mutually workable solution. Many landlords have been willing to offer tenants reasonable options such as rent reductions, deferrals and covenant waivers (such as opening require- ments) to the extent allowable by landlords’ lenders. Ultimately, the best choice for both the landlord and the tenant is to proactively work together through the challenges the COVID-19 pan- demic is presenting. Such a unified approach will result in tenants and landlords emerging from this pan- demic with the least disruption and harm possible. s Diamant Continued from Page 6 be developed by a professional cost estimator, usually a contractor. The former generally is sufficient when a “ballpark” cost estimate is needed, but the latter should be engaged when a more detailed cost is warranted. Accu- rate cost estimates are crucial in a due diligence study to help negotiate the purchase price; they are crucial in condition assessments to help deter- mine annual maintenance budgets. Following are several examples. n Foundation movement. We per- formed a structural due diligence study of an office building located in an area with known problematic soil conditions. During our evaluation, we observed slab-on-grade heave, which caused cosmetic damage to floor finishes, partition walls and other elements supported from the slab. Furthermore, we observed cracks at the wall panel joints and concluded (in collaboration with the geotechni- cal engineer) that the foundations of the building had moved, but it was unclear if the movement had subsided. Based on our evaluation, recommendations and cost estimate for repairing the building, our due dili- gence study helped everyone involved understand the potential risks with the purchase and helped both parties provide remedial measures. n Purchase negotiation and mainte- nance budget. Sometimes it is pos- sible to achieve two goals in one evaluation. While performing a due diligence study on a parking garage, we were asked to complete a cost estimate of repairs needed to address life-safety concerns and to extend the useful life of the structure. From the potential buyer, we understood that our cost estimate would be used for negotiating the purchase price of the garage and as a future maintenance budget tool for deferred maintenance. In this case, we helped the potential buyers better understand the costs of their purchase, both up front and over time. While due diligence studies and condition assessments are relatively common in the building industry, their importance cannot be under- stated. Whether a potential buyer is negotiating a purchase price, an owner is inventorying building repairs or a property manager is budgeting for window-washing operations, an accurate, thorough building assess- ment is valuable information for risk management. This is why we recom- mend a thorough, professional evalu- ation over the boiler-plate method of assessment. A few extra dollars spent on a more comprehensive building assessment will frequently pay divi- dends in the long run. s Hall Continued from Page 11 home (ask someone about that today) and all the other perks are really the baseline for attracting talent today. These simply get them in the door as the minimum requirements. The long-term solution is leadership and an organization that values people and gives them challenges, respect and appreciation. Prior to COVID-19 implications and the unemployment rate of less than 3% nationwide, many of these choices have leveled the values of specific benefits. But what we will find as we move through the next wave of employment changes is that while many potential employees will take what they can in a tight market, those with the highest skills look to ensure they are working not where the “fun” benefits and amenities are, but where they are appreciated, challenged and respected by true leaders. This will always be case for those who want job satisfaction and staying power. s Hewett Continued from Page 15 able to operate with much leaner on-site teams, and have the capacity to automate functions that demand stringent adherence to protocol with unfailing consistency. In response to the unprecedented requirements imposed by the global pandemic, real estate businesses will need to accelerate digital transforma- tion, and expand the scale and scope of the technology embedded within their operations. The post-COVID-19 reality will require the industry to maintain highest standards possible, in several aspects of its day-to-day opera- tions. Ease of access to real-time data, and the ability to automate processes and optimize performance, will be a differentiator in the months ahead. Data-driven digital solutions present the ideal solution, for the industry to do this consistently and verifiably. s Ramachandran Continued from Page 19