Quote:
Originally Posted by ChipsAhoya
typically the landlord will have a lower cost of capital than you, so, while you still have to run the numbers vs. financing you can get, it's typically best to maximize TI even though you'll pay higher rent.
ran
pretty much this, although as we mature it becomes a more complicated calculation, as we are signing 10 yr leases, and our cost of money is decreasing pretty sharply. I have followed your thread about your relocation, and in your situation it really becomes a math question I think. When we were a less mature company the landlords definitely had a lower cost of money than we did and were willing to pass it along as a good rate to us in the rent.
As far as trying to be my own GC on the build, this would be really challenging, for several reasons, and I'm pretty sure I would pay almost the same without the protections that a GC will provide in terms of insurance and warranties on the build. (an established contractor in any market will be better able to negotiate the best price as opposed to an individual)
While I don't act as GC on our jobs, I do visit the jobsite on a daily basis for most builds. I feel it is important to make sure things that might be a problem operationally or for maintenance issues are corrected before completed (no matter what your plans say-unless you are there, something will end up wrong and you won't notice until the worst moment of course), and to make sure the subs aren't cutting corners which might cause delays in completion as corrections are far more time consuming than doing it right the first time.