What is a Test Fit?
A test fit is an initial spatial plan produced by architects that gives occupiers a visualized layout of how a space might be organized. It’s the first step in the assessment process, helping occupiers understand the potential functionality and changes necessary in a particular space. In the lease negotiation process, Landlords typically cover the costs of a test fit by allowing tenants to use a budgeted price-per-square foot allowance towards an architect.
Using tests fits as a comparison tool is especially useful when occupiers are considering multiple potential location. By getting test fits for each location, an occupier can compare which spaces lay out the most efficiently and require the least modifications. If a particular space seems promising based on the test fit, the process might then progress to more detailed pricing plans and preliminary pricing to get a more clear understanding of the costs associated with outfitting a space.
Benefits of a Test Fit
An architectural “test fit” is an invaluable step in the commercial leasing process for both occupiers and brokers, serving as a preliminary blueprint of how a space can be adapted to meet the specific needs of a tenant.
- Provides a Conceptual Layout: This provides stakeholders and occupiers with a visual of the potential of a space, ensuring that it aligns with the occupiers’ operational requirements.
- Estimate of the Scope of Work: Test fits can provide foresight into the costs and financial planning of building out a space.
- Understanding Limitations: Occupiers can get a better idea of size or layout limitations for their particular use.
- Risk Mitigation: a test fit can mitigate the risk of costly post-lease surprises, making it a strategic tool in the leasing toolkit.
What is the Typical Cost?
Most commonly, test fit agreements range from $0.12/sf – $0.15/sf and are most commonly used for office space layouts. An Occupier’s Broker will engage an architect during the negotiation process to perform the test fit once they have agreed to terms with a Landlord and the Landlord will draft a separate agreement with the Architect to provide this service.
Who pays for a test fit?
Typically, when an Occupier’s Broker is negotiating the terms of a lease in a Letter of Intent (LOI) agreement, a Landlord will provide an allowance in the agreement to go towards a test fit agreement. Most Landlords view this expense as a marketing tool to entice interested parties who have included the building in the short list of properties they are working with.
In some instances, a Landlord may have a preferred Architect they use to provide this service as well, but it remains a Landlord expense.