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The Overwhelming Rise of the “Tenant Improvement Allowance” in the Office Market
# The Overwhelming Rise of the “Tenant Improvement Allowance” in the Office Market While the office market continues to be tenant friendly and the velocity of deals in the market is slow, construction pricing has risen considerably in recent years. As a result, landlords are no longer likely to agree to a “turnkey” deal. A turnkey deal means that the landlord, at the landlord’s sole cost and expense, will pay for the architectural plans and full construction of a tenant’s space. Throughout the last 4 years contractors and suppliers have dealt with supply chain issues, long lead times, erratic material increases, and everything in between. Project pricing could change on a monthly basis…and not in the right direction. Due to potential increases in construction during the deal life cycle, landlords are unwilling to provide carte blanche turnkey deals and have moved to Tenant Improvement Allowances (“TIA”) on almost all deals. This TIA is being given to tenants as a concession to the real estate transaction and, admittedly, the amount of these allowances continues to rise due to the market and consistent rise in construction pricing. While TIA amounts are considerable, it nonetheless puts pressure back on the tenant for rising costs on their fit-out. The graph below will give you a sense of how fit-out pricing has increased over the last handful of years: To help our tenants navigate this shift in deal dynamics and its impact on their bottom line, Gola Corporate Real Estate proactively has hired a true Construction Manager (“CM”), John Diemer. John is an engineer and has vast experience in all commercial and residential construction projects. Along with John, Gola’s Project and Construction Management Team has the ability to oversee the entire fit-out project on a real time basis and mitigate any post-lease signing issues that may arise with the building and the general contractor. Considering the risk involved for tenants, we feel that a tenant advocate project and construction manager is necessary. Gola understands this pivotal role and we provide Project and Construction Management at **no charge** to our valued clients. To learn more about our Project and Construction Management services, please contact us. ← New Headquarters for Penn Spinout iECURE Elliott Greenleaf Renews 22,000 SF in Blue Bell, PA → #### CITY 2001 Market Street, Suite 2550 Philadelphia, PA 19103 800-794-4652 #### SUBURBAN 2490 Boulevard of the Generals, Suite 100 Norristown, PA 19403 610-631-0333 #### FOLLOW US * Follow * Follow © Coyright 2023 Gola Corporate Real Estate. All rights reserved. Privacy Policy | Terms of Use
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March 28, 2023 at 1:04 AM
New Headquarters for Penn Spinout iECURE
# New Headquarters for Penn Spinout iECURE Gola Corporate Real Estate recently represented iECURE in the leasing of their headquarters space at 1777 Sentry Parkway West in Blue Bell, PA. iECURE is a leading gene editing company focused on developing therapies that utilize mutation-agnostic in vivi gene insertion, or knock-in editing for the treatment of liver disorders with significant unmet need that recently raised $65 million to advance in vivo gene editing program. iECURE’s COO Paul Firuta shared his experience with Gola: > **As an early stage biotech, we needed to find an office location appropriate for the company’s Phase of development. The Gola Team was excellent at listening to our business needs and understanding important aspects of finding office space – for example, size, location, duration, furnishings, ability to recruit top talent and flexibility. ** > > **Initially, we sourced spec space for a 1 year term. Nine months into the lease, we identified the need to expand the company and secure much larger space to recruit outstanding talent and provide a great work environment that reflects iECURE culture. The Gola team helped us secure the lease and negotiate favorable terms and ensuring we had the appropriate office location to continue to expand the company as the company moves into later stages of clinical development.** Read more about iECURE’s latest funding round in the Philadelphia Business Journal: iEcure raises $65M to advance its gene-.. For more information, please contact Mark Gola. ← Welcome to the Team: John Diemer The Overwhelming Rise of the “Tenant Improvement Allowance” in the Office Market → #### CITY 2001 Market Street, Suite 2550 Philadelphia, PA 19103 800-794-4652 #### SUBURBAN 2490 Boulevard of the Generals, Suite 100 Norristown, PA 19403 610-631-0333 #### FOLLOW US * Follow * Follow © Coyright 2023 Gola Corporate Real Estate. All rights reserved. Privacy Policy | Terms of Use
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February 21, 2023 at 7:49 PM
25% of Office Space Unoccupied in Philadelphia Suburbs
# 25% of Office Space Unoccupied in Philadelphia Suburbs As father time moves along, we are staring down a full 3 years since the pandemic began. www.propmodo.com sites that 25%, or roughly 3 million square feet of office space in the Philadelphia Suburbs remains unoccupied. This 25% marker stands out nationally compared to our peer group. While these numbers are rather staggering on the whole, it further cements the point that Tenants are in a clear position of power over landlords. Whether you are in a situation to consolidate, downsize, expand, renew or relocate, any sort of office space real estate related event is firmly in your favor…if your process and strategy is properly coordinated. The Gola Corporate Real Estate exclusive tenant representation & project management service platform has helped thousands of companies in providing both the proper negotiation strategy AND ensuring the footprint for your office space is conducive to the company needs and its employee retention and attraction. It cannot be stressed enough that space planning and workplace solutions in a hybrid world is just as important to your culture and bottom line, as it is to run a true exclusive tenant representation site selection and negotiation process. The water is murky for all tenants and landlords as office space evolves in a post-pandemic market. Gola Corporate Real Estate is here to bring clarity to your companies process and ensure that you are getting the best possible renewal, relocation, consolidation, expansion or downsize terms out of your landlord. ← VIDEO: Gola Represents ifm efector on Build-to-Suit Distribution Center Welcome to the Team: John Diemer → #### CITY 2001 Market Street, Suite 2550 Philadelphia, PA 19103 800-794-4652 #### SUBURBAN 2490 Boulevard of the Generals, Suite 100 Norristown, PA 19403 610-631-0333 #### FOLLOW US * Follow * Follow © Coyright 2023 Gola Corporate Real Estate. All rights reserved. Privacy Policy | Terms of Use
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November 9, 2022 at 4:16 PM
VIDEO: Gola Represents ifm efector on Build-to-Suit Distribution Center
# VIDEO: Gola Represents ifm efector on Build-to-Suit Distribution Center Gola Corporate Real Estate exclusively represented ifm efector, which develops and manufactures sensors and controls for a wide variety of industries, in the market search, lease negotiation and project coordination of a new, build-to-suit distribution center. ifm needed to more than double in size, increasing their space from 25,000 SF to 52,000 SF. The ground-up, build-to-suit project faced some challenges with COVID, supply chain issues, and price escalations, but ultimately the ifm and Gola teams worked closely for a successful, turn-key project. ifm had previously worked with Gola to exclusively represent the global company on their North American headquarters and the expansion of their prover manufacturing division, both in Malvern, PA. Watch the video for an in-depth look at ifm’s new distribution center. ← Acme-Hardesty Relies on Gola for Long-Term Office Renewal 25% of Office Space Unoccupied in Philadelphia Suburbs → #### CITY 2001 Market Street, Suite 2550 Philadelphia, PA 19103 800-794-4652 #### SUBURBAN 2490 Boulevard of the Generals, Suite 100 Norristown, PA 19403 610-631-0333 #### FOLLOW US * Follow * Follow © Coyright 2023 Gola Corporate Real Estate. All rights reserved. Privacy Policy | Terms of Use
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October 26, 2022 at 7:39 PM
Acme-Hardesty Relies on Gola for Long-Term Office Renewal
# Acme-Hardesty Relies on Gola for Long-Term Office Renewal Acme-Hardesty, a division of Jacob Stern & Sons, Inc., signed a 12,000 RSF, long-term renewal to refurbish their offices to 450 Sentry Parkway in Blue Bell, PA. Since 1942, Acme-Hardesty has served as a leading distributor of castor and palm oils and derivatives. The company provides innovative bio-based products and solutions for industrial and regulated markets, maintain preferred relationships with suppliers and exceed customer expectations with optimized logistics. Plus, our attention to detail is unmatched and allows us to manage risk consistently. Gola Corporate Real Estate exclusively represented Acme-Hardesty with negotiating the lease agreement. Acme-Hardesty also utilized Gola’s project management services to their fullest extent. **_“_**** _We’ve now had several real estate transactions that benefitted from Gola’s involvement. The project management services are invaluable. To have the advantage of experts overseeing our build-out proved to be critical. Acme-Hardesty has capitalized on the trusted relationship that I have built with Dave Butera and his Gola team. Gola forced our Landlord to compete with the market. Amazing that, for all the good they do, they get paid by the Landlord. GCRE is an important part of our business.”_** **_-Jim Mazich, Vice-President Finance and Operations_** ← A Historic Landmark Location for a Woman-Owned Technology Company VIDEO: Gola Represents ifm efector on Build-to-Suit Distribution Center → #### CITY 2001 Market Street, Suite 2550 Philadelphia, PA 19103 800-794-4652 #### SUBURBAN 2490 Boulevard of the Generals, Suite 100 Norristown, PA 19403 610-631-0333 #### FOLLOW US * Follow * Follow © Coyright 2023 Gola Corporate Real Estate. All rights reserved. Privacy Policy | Terms of Use
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October 7, 2022 at 3:35 PM