Have you ever stayed at an all inclusive resort or taken an all inclusive cruise? If so, you will have great knowledge about how these programs work and their pros and cons. The main pro is cost control. You can have a relatively good time and stay within your budget. The cons are you can not deviate from the offerings without some sort of penalty or displeasure. You may be offered endless drinks only to find them to be low quality, watered down or off just slightly. You will pay extra for Top shelf. These sorts of vacations are not for everyone.
It’s important to remember that a landlord’s main goal with a turnkey approach is to get the build-out completed at a lesser cost than a Tenant Improvement allowance would cost them.
These pros and cons are also similar with TurnKey leases. The landlord will present packages in order to reduce your exposure and cost risk during the renovation phase. They sell it as “We can handle this and all you need to do is move in.” They will offer design services, construction services and project management in exchange for a negotiated rental rate over a negotiated lease term. These packages are all designed in the Landlords favor, and benefit. The less they specify on your renovation the more they make. It’s important to remember that a landlord’s main goal with the turnkey approach is to get the build-out completed at a lesser cost than a Tenant Improvement allowance would cost them. Unless you are a design professional, or have extensive construction background how do you know what you are getting? How can you ensure that you are not getting watered down drinks? Who represents you and your interest? Very rarely will Low Voltage, Audio visual, security and furniture be included in these packages. You should understand these costs prior to executing your lease agreement as they may have a real impact on your overall company's budget.
A design professional can help you and your company make selections that match your taste and style. Help to manage your overall budget, and bring the complete package together.
