Colorado-Real-Estate-Journal_476911

Page 12 — Retail Properties Quarterly — August 2025 www.crej.com MAX DAVIDOFF Marketing & Operations Coordinator 510.910.5348 max.davidoff@pineandpeakcapital.com ADAM ALUISE President 303.587.7518 adam.aluise@pineandpeakcapital.com LILIANA DOMINICK Credit Director 720.217.2568 liliana.dominick@pineandpeakcapital.com RECENT CLOSED TRANSACTIONS $2,700,000 // 13,700 SF Medical Office // Denver, CO $5,200,000 // Health Care // Southeast $2,060,000 // Retail Midwest Region Contact Us: (303) 587-7518 info@pineandpeakcapital.com www.pineandpeakcapital.com 1738 Wynkoop St., Unit 302, Denver, CO 80202 Matching Need with Capital Sourcing commercial mortgages for real estate Pine and Peak Capital provides full-service debt and equity placement and financial solutions for commercial and multi- family real estate. We are the leading commercial mortgage banking firm with more than 50 years of combined experience. We provide CRE owners and investors access to their best financing option. I n today’s highly competitive retail environment, opening a new brick-and-mortar location comes with a host of challeng- es, including rising construc- tion costs, stubborn interest rates, complex real estate negotiations, evolving consumer expectations, and the ever-present pressure for speed to market. Once a site is selected and lease or purchase negotiations are final- ized, the spotlight shifts to the design and construction phase. At this stage, collaboration between the owner, architect/engineering team and general contractor, col- lectively known as the OAC team, is critical to delivering a project on time and within budget. From our experience, building a trusted OAC team early in the pro- cess, one that shares a unified goal of guiding the project efficiently, is essential. This foundation of trust and collaboration leads to well- executed, high-quality projects and long-lasting professional relation- ships. n Choosing the right construction management approach. Retail own- ers have several construction man- agement approaches to consider, including: • Design-bid-build (hard bid) : The traditional method where design is completed before bidding begins. • Design-assist-build: A hybrid model where the GC provides lim- ited input during the design phase. • Design-build: A fully integrated, collaborative approach involving the entire OAC team from the outset. This article compares these CM approaches, highlighting how a shift in mindset can help retail owners open stores in a more cost- effective, efficient way. n The traditional route: Design-bid- build. Design- bid-build, often referred to as “hard bid,” is the most conventional CM approach. In this model, the A/E team works with the owner to develop a complete set of construction documents. These documents are then used to solicit sealed bids from multiple contrac- tors. The goal is to receive “apples- to-apples” bids based on a clearly defined scope, allowing the owner to select a contractor primarily based on price. While this method appears to offer transparency and cost control, it can introduce hidden inefficien- cies. The separation between design and construction often adds weeks to the project timeline. Additionally, because the GC is not involved dur- ing design, constructability issues may arise later, leading to change orders and/or time delays. In today’s ROI-driven retail landscape, these setbacks can jeopardize the feasibil- ity and success of a project. n A middle-ground alternative: Design-assist-build. Design-assist- build offers a hybrid approach that blends elements of both design- bid-build and design-build. In this model, the GC is brought into the project during the design phase – not to lead the design, but to pro- vide valuable input on constructa- bility, materials and scheduling. The A/E team still drives the design pro- cess, but with the benefit of early contractor insight. This approach can be particularly effective for retail owners who want to maintain control over design while still gaining the advantages of early collaboration. Although design-assist-build doesn’t fully integrate the team like design-build, it encourages early engagement, improves coordination and reduces downstream disruptions. n A truly collaborative alternative: Design-build. In contrast to the first two approaches, the design-build approach brings the entire OAC team together from the beginning, often under an integrated structure through a single contract or a uni- fied process led by the GC, A/E or a third party. This model fosters true collaboration throughout the design and construction process. By involving the GC early, con- structability reviews and material evaluations happen in real time. This allows the team to identify cost-saving opportunities, manage long lead times proactively, and make informed “real-time” deci- sions aligned with both budget and schedule. For instance, in one proj- ect involving a multiunit franchise brand, our team flagged a long-lead specialty tile during design, allow- ing for alternate selections before documents were finalized, thus avoiding a six-week procurement delay. Design-build typically includes multiple budget checkpoints dur- ing the design phase. These are competitively bid to subcontrac- tors, with full transparency for the owner. Since the GC’s fees (includ- ing profit and overhead) are prene- gotiated, concerns about competi- tiveness are addressed without sac- rificing collaboration or efficiency. In our experience, design-build projects are consistently faster to market and experience significantly fewer change orders, often reducing total project delivery time by 15%- 20% compared with more tradition- al CM methods. n Why it matters now more than ever. With economic pressure mounting and capital allocation more scru- tinized than ever, retailers must make CM decisions that maximize efficiency without compromising quality. While design-bid-build may feel familiar or “safe,” it often limits innovation, flexibility and speed, three traits essential in today’s retail landscape. Design-assist-build offers a valuable step toward col- laboration; but for retailers seeking full alignment between design, bud- get and schedule, design-build stands out as the most efficient, integrated solution. General contractors succeed when projects are built. It’s in their best interest to help clients be as effi- cient as possible, fostering trust and building long-term partnerships in the process. Choosing the right CM approach is no longer just a contractual decision, it’s a strategic one. By prioritizing collaboration from the outset, retailers can meet modern demands for speed, cost- efficiency and quality while avoid- ing the hidden risks of outdated delivery models. In a retail world that rewards agility and execution, collaborative construction is more than a trend; it’s a competitive advantage. s cartersealing@precision-contractors.com Rethinking construction: Collaborate for efficiency Carter Sealing Business development manager, Precision Contractors