A real estate deal isn’t just about rent or location – it’s about whether the space can actually deliver what the business needs, without nasty surprises down the line.
That’s why cost consultants have a vital role to play long before contracts are signed or fit-outs begin.
Over the years, many clients and agents have benefitted from my advice during building selection and lease negotiation, which ultimately has helped get deals completed. Here’s a look at how technical due diligence can be supported – helping businesses move forward with confidence.
1. Supporting Building Selection
During early viewings, it’s important to assess the real cost and technical implications of choosing one building over another. Collaborating with a building services engineer at this stage can help identify:
- The need for supplementary cooling or ventilation
- Ceiling height constraints, riser availability, and infrastructure limitations
- Structural feasibility for tenant staircases or heavy-use zones
- Power, water, and data capacity
- Drainage limitations, especially for kitchens, showers, or increased WC demand
2. Reviewing Statutory and Lease Constraints
Another critical factor is whether desired changes are actually deliverable. Considerations should include:
- Planning or Building Control implications for works like stair insertions or plant installation
- Reinstatement obligations tied to the lease
- Restrictions in landlord design guides, such as ceiling works, acoustics, or services integration
- Opportunities to bring forward Cat A reinstatement where scopes align
3. Assessing Fit-for-Purpose & Modification Costs
If the space is already fitted, it’s worth assessing what can be reused and what needs replacing. This includes:
- Strip-out and modification of cellular layouts, MEP, or AV systems
- Potential reuse or refurbishment of partitions, ceilings, and furniture
- Cost and disruption associated with making the space fit for purpose
4. Building a Comparative Budget
Benchmarking cost estimates across multiple building options gives stakeholders clarity. My approach at this stage is to:
- Model costs by functional area (e.g. workspace, meeting rooms, amenity)
- Price site-specific abnormals such as staircases, additional WCs, catering facilities
- Adjust for any known exclusions or landlord limitations
This provides a like-for-like comparison for commercial and technical decision-making.
5. Supporting Lease Negotiations
When heads of terms are being agreed, early cost advice can help negotiate:
- Cat A contribution allowances
- Landlord coordination of tenant modifications (e.g. soft spots in slabs, enhanced WCs)
- Programme implications of shared or delayed landlord work
Securing these terms early provides greater certainty downstream.
6. Testing Programme and Cost Viability
Understanding feasibility isn’t just about cost – it’s about timing. Key checks at this stage include:
- Readiness of landlord works and key base build dependencies
- Long lead items and coordination risks
- Realistic start-on-site and delivery assumptions
Where lease terms are short, it’s also important to test whether the level of investment can be justified.
7. Considering ESG and Future-Proofing
Where ESG targets or sustainability goals exist, it’s worth asking:
- Does the base build support low-carbon upgrades or modern environmental standards?
- Will tenant fit-out goals clash with landlord MEP or materials?
- Are staff wellbeing and inclusivity objectives achievable within the proposed building?
Early consideration avoids compromise or costly rework later.
8. Setting Commercial Guardrails
Once a preferred space is identified, it’s important to:
- Translate the business brief into a clear cost plan
- Decide on an appropriate procurement strategy that balances time, cost & quality objectives
- Set functional cost targets to guide the design
- Put in place governance to manage scope creep and maintain alignment with the business case
Whether the project is delivered via D&B or traditional procurement, these commercial guardrails support effective delivery.
Final Thought
Technical due diligence is about far more than ticking boxes. It’s about understanding the true investment required to get the space operational – and ensuring the design and commercial strategies are aligned from day one.
Good early cost advice helps clients and agents move forward with clarity, speed and confidence.
