CREJ

Page 22 — Retail Properties Quarterly — August 2019 www.crej.com Northern Colorado’s Premier Real Estate Services Group Contact: Jake Hallauer, CCIM | Ryan Schaefer | Mark Bishop NORTHERN COLORADO INDUSTRIAL OPPORTUNITIES NORTHERN COLORADO’S PREMIER REAL ESTATE SERVICES GROUP 970 663 3150 3665 John F. Kennedy Parkway, Bldg 2, Suite 202 Fort Collins, CO 80525 naiaffinity.com VERY FUNCTIONAL & CONVENIENTLY LOCATED INDUSTRIAL CONDOS NEW CONSTRUCTION FLEX CONDOS FOR SALE OR BUILDING FOR LEASE INDUSTRIAL, FLEX, SHOWROOM, OFFICE CONDO UNIT FOR SALE 1331 RED CEDAR CIRCLE, FORT COLLINS, CO (North Fort Collins, just east of College Ave.) Available For Sale: 7,200± - 29,684± Sq. Ft. Available For Lease: 7,200± - 15,284± Sq. Ft. Sale price: $136.36 - $140.00 / PSF Lease Rate: $11.50 / PSF NNN (as-is) Condo units available or sale, lease, or leased investment opportunity. Building is equippedwith 3 dock-high doors, grade level overhead doors, functional clear span and clear height. Property is located within the Colorado Enterprise Zone and the Federal Opportunity Zone. Businesses may potentially qualify for tax credits and incentives! Co-listed with TJ Antinora of Antinora Real Estate | 970-402-5170 2534 (SEC OF I-25 & US 34) - 4691 CONCORDE AVENUE, JOHNSTOWN, CO Available: 2,240± SF to 20,640± Sq. Ft.* Sale Price: $170.00 - $220.00 / PSF Lease Rate: $12.95 / PSF NNN ($10.00 / SF TI allowance) Clear Height: 20’ ± Delivery: Core & Shell. Anticipated to be 8/1/19 Free span condo units available for sale or lease available for the entire building only. The 27,520± sq. ft. building can be demised down to 2,240± sq. ft units with approximately 80’ bay depth. Three units will have opportunity for dock high doors. *Each bay is 2,240± SF that can include 1,200± SF of mezzanine, for a total of 3,440± SF. Seller can install mezzanine prior to closing, or mezzanine can be excluded. 7287 GREENRIDGE ROAD, UNIT 2, WINDSOR, CO Available For Sale: 3,440± - 6,880± Sq. Ft.* Sale price: $165.00 / PSF Clear Height: 20’ ± One 6,880± sq. ft. core and shell condo (demisable down to 3,440± sq. ft.) available for sale in this exceptional multi-tenant, free-span ex building. Located just north of Crossroads Boulevard, at the SWC of Highland Meadows Parkway and Greenridge Road, within the Highlands Industrial Park. *Seller plans to install 2,400± sq. ft. of mezzanine space within the condo unit, which will total 6,880± sq. ft. available. W e all know the Colorado commercial real estate market is hot. Clients want developments com- pleted yesterday. Years of detailed historical budget data is great, but no two projects are the same. With the expectation of speed and with prices increasing, there is a lot of potential for costly mistakes. However, we have found that sometimes the way to go fast- er and get better pricing is to slow down (just a little). • Good budgets start with good design. Client demands often means moving very quickly. Speed can sacrifice the quality of the design documents produced by the architect and engineers. The gen- eral contractor and their respective subcontractors are caught up in this crunch for time. If the draw- ings are not accurate, subcontrac- tors and general contractors get anxious. Todd Rupp, vice president of preconstruction for GH Phipps Construction Cos., says, “Any good estimate starts with good docs. It is critical to clearly communicate the project plan in black and white to your trade partners to minimize anxiety and contingency.” A good general contractor is selling the owner/developer its plan for the project. This plan starts with good design documents. That’s why we keep it simple. Drawings are printed and passed around the office to get perspec- tives from those with an archi- tectural background, those with expertise in client requirements and expectations, an executive at the top, and of course from a construction per- spective. These comments are then combined and communicat- ed to our design team. Buy in from the team is achieved and then the drawings are ready for bidding or submittal to the city. Furthermore, we enlist a trusted GC or two to identify any areas of design that are confusing, unclear and could be improved at the start of a project. • Sometimes you’ve got to get into the weeds. The trick with most budgets is to identify the unique cost impacts and determine what they might cost and what time it could take. Never be afraid to ask the tough questions. Ask, do we really need this or that? Around the office, if we have a $100,000 budget problem to solve we start with $5s (thousands) and $10s. I wouldn’t expect to find $100,000 in potential savings with a single item, but I do expect to find the smaller cost-savings opportunities. Often, the small details and, there- fore, small costs can add up to big savings. Value engineering can be found anywhere. Make a list, do the research, truly understand what is important to the client, the city and the project, and move for- ward with smart choices. • Get everyone involved. Owners, GCs, designers – once a project moves from preliminary budget to higher probability, we quantify most everything. This is a painful process made simpler via technol- ogy. We measure the square yards of asphalt paving, count trees, review the building materials in great detail and determine how much earthwork will be imported or exported. This work is tedious, but this level of detail allows for more understanding of what can be changed and also what cannot be changed. Once we know these quantities as the developer we can better communicate with our GCs and designers who can further guide smart design decisions. • Long-term partners. Earlier in my career, I worked for a local midsize general contractor. I can’t help but grimace when I hear of a project with more than three bidders. I am a proponent of negotiated work but that is a topic for another time. For GCs and subcontractors, time is a very valuable commodity. I real- ize preliminary budget help from a trusted GC doesn’t make anyone any money. Time is valuable. Devel- opers asking for too many bids, too much bid breakdown, in too little time are not assembling a recipe for a long-term partnership. Jeff Durbon, president of Crosslands Construction Co., says, “If you have selected good people, they all want the same thing, time with the proper tools and knowledge to build a successful project.” I think our industry is sometimes guilty of thinking an estimate is simply a compilation of numbers. Estimators are authors. Yes, they are getting numbers from many trades and sorting through who has a “good number,” but just importantly they are writing the story. Is the sub qualified to do the project? Is the subcontrac- tor workload in line with project expectations? Who is the project manager and how will his level of experience and expertise come into play? Does the subcontractor always make money when a spe- cific superintendent is managing the site construction? Ideally, esti- mators are working in conjunction with operations staff to craft the story to ensure a successful proj- ect. The long-term treatment of people from owner to GC, GC to subcontractor, owner and GC to the various design team members, and many other related trade partners (like geotechnical firms, surveyors, and city staff) is what matters. This is what separates a consultant from a partner. As a project devel- oper many times we get caught trying to simply fix the problems. I really do think most of us should also remember to thank everyone we work with for the things that are going well. The real estate ecosystem is broad and involves many different people. Two of our company values are to respect the real estate ecosystem and calm in the face of turbulence. There is a lot of power to these simple statements. s How can project budgets remain competitive? Brian Wood Vice president of real estate construction, Cadence Capital Investments Development