When considering a commercial real estate space, one of the first questions you might ask yourself is: Will this space work for me? The answer lies in a process known as the test fit. A test fit is an essential step that helps determine if a potential space can meet your specific requirements before signing a lease. We talked with architect, Zack Arndt of Kem Studio to take a closer look at what the test fit process entails, its role in decision-making, and how it can set the stage for a successful project.
What is a Test Fit?
A test fit is a high-level space planning exercise. It provides a diagrammatic layout that illustrates how a tenant’s needs—such as offices, workstations, conference rooms, or other specific functions—could fit into a potential space. Unlike a full design, a test fit is a quick and straightforward tool to assess feasibility and help you decide whether to move forward with lease negotiations.
There are three main scenarios for test fits (when looking at existing spaces) and it the process varies depending on who initiates it and their objectives:
- Real Estate Agents Leasing Space: Test fits in this scenario are initiated by commercial real estate agents or landlords to help market a property. Since agents may lack detailed knowledge about the tenant’s program requirements, these test fits are based on generic layouts and limited client interaction. The goal is to show potential tenants what the space could look like, making it a critical part of the leasing process.
- Owners Direct Engagement with an Architect: When you, the tenant, work directly with a designer or construction firm, the test fit can become more tailored. Designers gather information about your specific needs, ensuring the test fit reflects your operational goals. This approach allows for a smoother transition from the test fit phase to design and construction. This timeline can range from a few days to 2 weeks.
- Collaborations with Owner’s Representatives: Owner’s Representatives like Plan North Partners often approach architects to produce test fits for you. This process will unfold in a similar way to scenario #2, however, PNP will take an holistic approach while informing owners of potential total project costs and timeline. Plan North will take the time to understand your needs and goals for the project, and then make sure you are aligned with the right architect to fit your project needs.
How Much Does a Test Fit Cost?
A test fit usually comes at a very minimal cost, somewhere under $0.25/square foot. The landlord may cover this cost in order to help market a property.
During lease negotiations, a property will also commonly offer a tenant improvement allowances (TIAs)— funds provided by the landlord to offset build-out costs as a part of the lease agreement. Plan North Partners can help you negotiate higher TIAs by aligning expectations for construction costs with the lease terms.
For example, a longer lease term might justify a larger TIA, as the landlord has more time to recover the investment.
Beyond the Basics: Value-Added Insights
While a test fit is primarily a feasibility tool, it can also shed light on the project scope and cost. At this stage, architects can help set realistic expectations by sharing insights from past projects and introducing cost estimates for potential add-ons.
If you have a more specific requirement or a need for visualization, the test fit process can extend into 3D modeling or conceptual layouts, depending on the firm you’re working with. While these are not part of a standard test fit, they provide greater detail and can make decision-making easier.
What Happens Next?
“It’s important to remember that a test fit is not a design,” said Arndt. “It’s a pre-design exercise meant to answer the first question: Do I have enough space to make this work?”
Once a letter of intent (LOI) is signed on a property and a contract signed with an architecture firm, the focus shifts to starting the design process. At this stage, a full design program is developed, drilling down into the specific details that will make the space function optimally.
The Value of Test Fits
The test fit process is a critical step in ensuring the success of any commercial real estate agreement. Whether helping you visualize possibilities, negotiating better lease terms, or laying the groundwork for a smooth design process, test fits are a powerful tool in your commercial space planning toolkit.