CRE upgrades are needed for an endless number of reasons; various inefficiencies, high utility costs, tenant demands, a desire to be ecologically sensitive and the list goes on. Improvement leads to lower operating costs, increases lease rates, or creates a more comfortable environment for tenants. All this leads to an increase in asset value.
The first and last word in CRE upgrades should be comfort. Traditionally, the focus has been tenant comfort, leaving building owners uncomfortable in a position to figure the logistics of the upgrade process and servicing the equipment. Worst of all, funding everything. Improving tenant comfort is almost always uncomfortable for owners. It does not have to be that way.
What if you did not have to worry about any aspect of a commercial real estate upgrade? That includes worrying about funding. What if someone made the process comfortable for owners?
Meet REDAAP®, a Kerrville, Texas-based company doing just that – making it easy, making it comfortable, creating comprehensive solutions and performing long-term.
The company designs & engineers, funds, and performs project management overseeing the installation and service phases of commercial real estate upgrades.
REDAAP® funds capital upgrades As-A-Service. The company offers a comprehensive upgrade solution utilizing a Maintenance Service Agreement (MSA) structure to create financial efficiency and guarantee success and service through the life of the agreement.
Addressing physical comfort — like the quality of light, air, temperature, sound, and ergonomics — has the greatest immediate and direct impact on productivity.
The first and last word should be comfort.
Dr. Jacqueline Vischer, a professor in the Department of Environmental Design at the University of Montreal, created a model for work environments that ranks comfort into an ascending continuum of the physical, functional, and psychological. The model suggests that addressing physical comfort — like the quality of light, air, temperature, sound, and ergonomics – has the greatest immediate and direct impact on productivity. A company needs to ensure that its employees have a safe, comfortable place to work.
Start at the end, understand the beginning.
Whether you are addressing outdated systems, upgrading for a new tenant, installing new construction, whatever the case may be, the installation process is usually the end of a relationship with your contractor. This creates unforeseen risks for you and alleviates the risk for the contractor- not an ideal scenario.
REDAAP® funds the upfront costs and services the equipment over the life of the agreement. It is the last part of the sentence that is the advantage. When others turn over the risk to you, REDAAP® is servicing your equipment for the life of the agreement. There is no need to expand a burdensome service department or take on knew knowledge in order to succeed.
Why worry about a warranty when you can have the gold standard? Rarely is a warranty worth more than the paper it is printed on after the first year. Even in the first year, the cost of invoking a warranty can far exceed the value received. Warranty is good, the guarantee is better, but both lack teeth. A built-in guarantee where you control the purse strings is the gold standard. The REDAAP® MSA is the gold standard.
Clients are happy with the savings, ecstatic about improved efficiency, payroll savings, and better productivity, excited about increased rents and an efficient building. Ultimately it all translates to higher asset values. Because we are ultimately judged throughout the process and again at the end of the agreement, we focus on and deliver satisfied customers from the beginning to the very end. Imagine no CRE upgrade worries?
About payroll savings, and better productivity.
Most commercial upgrades are sold using the idea of utility savings. These savings are a pittance compared to the positive impact upgrades can have on payroll and productivity.
Your accounting department will tell you the electric bill pales in comparison to payroll. A reduction in payroll combined with an increase in productivity can have an outsized positive financial impact. Reducing payroll 2% to 5% and increasing productivity even marginally has a huge positive financial impact. A focus on upgrading comfort systems can lead to these gains- better lighting, better indoor temperature controls- a more productive workforce. In retail, comfort upgrades can translate to increased consumer spending.
Let’s get started.
A quick conversation can set a successful relationship in motion. Call us at 830-496-4090. Imagine never having to worry again.