17. Industry Sectors & Refurbishment Flashcards
What are 5 aspects and challenges of health sector refurbishments?
- Complex business need
- High operating costs
- Masterplanning is critical (cannot shut down to extend)
- Changing technology
- More out-sourcing non health functions
What are 5 special points of note for health sector refurbishments?
- Complex masterplanning
- Building services component high
- Mock up room essential
- Use group focus for fit for purpose
- Robust
What are 5 development commercial attributes for hospitality refurbishments?
- Long term investments and seasonal business
- Investor separate from operator
- Added value business from conferences and operator chain bookings
- Food/beverage traditional mainstay but dropping
- Cost allocation is important
What are 6 aspects and challenges for hospitality refurbishments?
- Location and operator driven
- Highly user sensitive
- High operating costs and staff
- Highly competitive
- Mock up rooms essential
- Differing commercial arrangements between operator and owner
What are the two types of industrial developments?
Simple industrial (warehouse) - typically single building 1 tenant who pays all outgoings
Factory - owner provides shell and tenant pays for fitout and equipment
What are 4 aspects and challenges of industrial refurbishments?
- Generic building to suit range of tenants
- Often tenant initiated
- Planning often sensitive to RMA provisions
- Can be very large areas
What are 2 special points to note for industrial refurbishments?
- Robust
- Needs good design and masterplan
What is an attribute of community development refurbishments?
Usually not commercially viable - aim to recover costs
What are 6 aspects and challenges of community development refurbishments?
- Lots of stakeholders
- Political
- Staged funding
- Capital restricted
- Large facilities need to integrate with transport
- Manage various user groups
What are 2 reasons to redevelop or refurbish?
- Building amenity no longer meets tenant needs
- Environs of the building change - unsuited for type of tenant
What are 3 ways the building amenity may no longer meet tenant needs?
- Building services, appearance, opex
- Health and safety, seismic
- Functional layout
When should refurbishments be carried out?
Plan so they are completed before lease expiry to realise higher rent on renewal
What are the 4 levels of redevelopment?
- Titivate refurbishment (big maintenance)
- Medium refurbishment (15-25% replacement)
- Major refurbishment (50-75% replacement)
- Redevelopment (extends size - new construction)
What are 5 challenges of refurbishments?
- Respecting tenant rights
- Building development audit to determine scope
- Accurate early estimates of compliance requirements
- Construction skills
- Tenant/user communication during works
What are 3 enablers to refurbish?
- Capital
- Ability to create vacancy time (during dip in user trading cycle)
- Tenant agreement
What are 2 special cost risks for compliance?
- Building consent for alterations - requires compliance with new codes where physically possible
- Latent defects
What are 4 main requirements for refurbishment building consent?
- Fire protection
- Access
- Removal of unsafe materials
- Seismic upgrade
What % NBS is required?
33% but would need 67% or 80% for top grade tenants
What are latent defects?
Unseen problems from prior construction that emerge
What are 3 important parts of tenant management during refurbishment?
- Consult from very beginning
- Recognise lease obligations - quiet enjoyment, quality of front door
- Develop Tenancy Management Plan - maintain contact with executive, management and frontline staff
What are 3 important parts of building works during refurbishments?
- Plan well with the contractor
- Ensure tenancy operations clearly understood
- Get contractor part of tenancy management plan and work with tenant operational staff
