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By ELIZABETH HAYES
Staff Reporter
Got the bug for unconventional digs?
It’s going to cost you.
Even without frills, renovating a big, unencumbered warehouse with no doors or corner offices will run $15 to $30 per square foot or up to $1.2 million for a 40,000-square-foot warehouse.
That covers sandblasting, seismic upgrades, installation of skylights, operable windows and bathrooms, new electrical and heating-air conditioning systems, and rigid insulation that goes between the wooden substructure and roof.
“A lot has to do with the age and condition of the building,” said Amy Roy, an interior designer at HLW International. “Many clients think that by leaving their office space and building systems exposed, it will save money. What they don’t realize is that there can be as much or more work involved in making the exposed structure and systems look good and organized.”
Several factors can nudge up the price of the “shell and core work” including the installation of windows (not many original warehouses have them), and those exposed galvanized metal ducts that look so cool but are far from cheap.
The price tag for the “shell and core work” is tough to compare to standard office buildings because the nature of renovation work is so different. An office building that has been well-maintained and up to code would cost next to nothing to renovate. But an old office building that needs extensive work new elevators, asbestos abatement, air conditioning and fire safety improvements could run $30-$50 per square foot.
In addition to the basic work at a warehouse, the cost of tenant improvements can vary wildly. On the low end, a company might spend as little as $10 per square foot, using cheaper materials, such as plywood bought off the shelf. “You can get more interesting stuff for less money,” said Michael White, a partner at the architecture firm HLW.
Tenants also can save money by relying on the innate attributes of the building itself. “You try to use some existing assets of Westside warehouse buildings, whether it’s the brick walls, the metal structure or skylights,” White said. “That’s free design. There’s stuff already there you can play off of.”
The barren appearance can also send a message to clients that the firm hasn’t sunk all its money into opulent offices. “A lot has to do with companies wanting to show people they work with that they’re putting their money where it’s important,” White said.
Still, there are businesses that have spent more than $100-per- square-foot on elaborate kitchens, custom-made furniture and glass blocks or curving walls.
Depending on the desirability of the location, converted buildings can command some healthy rents from a low of $1.25-$1.40 per square foot in Culver City to $1.75-$2.50 in Santa Monica. Hollywood is in between, at about $1.65-$1.90. (All those rates are triple net rents, which include a portion of maintenance, insurance and taxes.
There’s also the cost of the warehouse building itself. In Santa Monica, the cost has risen from about $80-$100 per square foot a few years ago to $200 today.
