I thought it would be interesting to start this blog post with a question to test your restaurant construction IQ. What’s the difference between building the back of the house of a TGI Fridays and a McCormick and Schmick’s? Nothing. That’s right, when it comes to restaurant kitchen construction, it doesn’t matter if you’re building […]
When the news broke before the holidays about a fire at The Shops at North Bridge on Michigan Ave., I had to hold my breath. As a national retail construction contractor, Englewood Construction has completed a number of retail construction projects in that mall. Was anyone hurt? Was it one of our stores? Thankfully, the […]
With the shuttering of stores like Circuit City and Linens N’ Things, big box retailers looking to gain market share certainly have their choice of vacant store locations in prime markets and shopping centers. And depending on the condition of their new stores, the savings on retail construction costs to retrofit the space could be […]
I’m not going to sugar coat it. Whether you’re a bank with distressed assets on your balance sheet, or you’re a real estate investor/developer who purchased a foreclosed commercial property, creating a viable workout plan can be an uphill battle. Each passing month brings further physical deterioration of unmaintained assets.
However, there are ways to stop the bleeding and minimize the costs of owning, maintaining and repositioning distressed and foreclosed commercial assets.
First, align yourself with a general commercial construction contractor familiar with completing distressed commercial properties. According to the fall 2009 issue of Development magazine, while hotels and retail properties are the most problematic in terms of default, foreclosure or bankruptcy, office distress is up 118 percent year-to-date in 2009 versus 2008. So make sure your general contractor specializes in the asset class of your distressed holdings.
There’s an old adage, “Better to be silent and thought a fool than open your mouth and prove it.” That may be true in some life situations, but not when it comes to hiring a firm to complete your next retail construction project.
Red Flag #1: Be wary of the general contractor that has no questions, exclusions or qualifications and agrees with all requests. A general contractor who just submits a bid without certain questions or qualifications may not understand the complete scope of work and schedule.