In the commercial and industrial real estate and construction industries, preconstruction services play a vital role in setting projects up for long-term success. These services often include strategic planning, tenant consultation, site feasibility analysis, preliminary design, budgeting, and schedule planning. By addressing key project factors early in the process, stakeholders are better equipped to evaluate potential spaces, manage risks, and make informed decisions.
This is especially beneficial as tenant requirements are becoming increasingly complex, driven by the rise of specialized operations in sectors like cold storage, food processing, manufacturing, life science, pharmaceuticals, and more. For brokers navigating these evolving demands, partnering with ARCO in the project’s early stages can be a key differentiator.
Tenant Need Expertise
A strong understanding of tenant-specific needs is valuable for brokers navigating complex lease negotiations. With experience designing and constructing spaces for tenants across industries such as cold storage, manufacturing, and life science ARCO can access feasibility, quickly identify potential challenges, and propose practical solutions from the start.
Through site visits, evaluations of current operations, and discussions about long-term goals, ARCO ensures the space meets the tenant's needs now and in the future.
Project Case Study: Sun Noodle
Early Involvement: Sun Noodle’s broker engaged ARCO during early lease negotiations.
Preliminary Design & Budgeting: ARCO developed several layout and cost options from the original 4,500 SF freezer scope to a full 23,000 SF build-out of the existing facility.
Expanded Lease Transaction: Based on information from ARCO, Sun Noodle opted for a full build-out of the facility, expanding the lease transaction from 4,500 SF to 23,000 SF.
Property Selection & Feasibility Guidance
Detailed site feasibility studies offer brokers and tenants technical insight into a site’s potential. These evaluations often include:
• Environmental assessments to determine remediation requirements
• Geotechnical reports that identify soil conditions and foundation implications
• Zoning reviews to confirm intended use and identify entitlement challenges
• Site utility evaluations for water, sewer, gas, and electrical capacity
• Full constructability analysis to assess development suitability
For ground-up developments, ARCO can also generate site massing and layout options to better understand how buildings can be configured on the property. For retrofit opportunities, ARCO can assess the building’s compatibility with the tenant’s operations and provide recommendations for necessary upgrades and modifications.
Preliminary Design & Budgeting
A common challenge during lease negotiations or build-to-suit considerations is the lack of reliable cost information. Without accurate construction input, brokers and clients are left estimating costs that may not reflect reality.
ARCO collaborates with brokers and clients to resolve this by delivering real-time budgeting, scheduling, and layout guidance during preconstruction. This insight allows brokers and tenants to:
• Understand the true cost of adapting or developing a site
• Compare the benefits of new build vs. retrofit options
• Use construction input to inform lease negotiations or development agreements
This support gives tenants a clearer picture of their total occupancy cost, not just rental rates. It also gives them the ability to conceptualize how a space can be used before a financial commitment is made. This allows for more informed decisions and often leads to larger, more strategic building or lease values.
The Design-Build Advantage in an Evolving Market
In today’s increasingly specialized commercial and industrial real estate landscape, the ability to bring construction insights into the earliest phases of a deal can be a critical differentiator. Preconstruction services not only bridge the gap between design intent and construction feasibility but also empower brokers and tenants with the tools to make more confident, cost-effective decisions. By engaging ARCO early - well before leases are signed or sites are selected - brokers can add significant value for their clients, reduce project risk, and improve the likelihood of long-term success.
As a design-builder and leading industrial contractor, ARCO National Construction helps clients navigate early-stage decisions to develop the best overall solution for their facilities. As part of our preconstruction services, we offer preliminary layouts, design concepts, and detailed budgeting to support informed decisions during lease negotiations. We’ve delivered complex tenant spaces across a range of industries — from cold storage and food & beverage to pharmaceutical, life sciences, and manufacturing.
”CBRE successfully concluded the sale of 8 Centennial in Peabody, MA, to Tishman Speyer. ARCO supported the preliminary site massing and budgeting, enabling the broker to assess the property's commercial potential and align the interests of buyer and seller.
Robert ByrneExecutive Vice President, CBRE & President, Commercial Brokers Association
ABOUT ARCO NATIONAL CONSTRUCTION
ARCO National Construction is a premier, full-service design-build general contractor with more than 30 years of experience providing clients with complete project delivery throughout the United States. Our professional, qualified team of engineers, project managers, superintendents, and architects is capable of designing and building the most demanding construction projects anywhere in the country. We pride ourselves in offering the best, most cost-effective, single-source, turnkey solutions and adding value to every project.
