The purpose of a tenant improvement (TI) project is to provide a custom interior finish that meets a specific commercial tenant’s needs. A building owner usually starts out with space for lease in shell condition, meaning the space hasn’t been built out before. This is best because initial improvements can be made according to the needs of the first tenant who has contracted out the space. Once that tenant moves out, future tenants rarely use the space as because it must be adapted to specific needs; plus commercial space should be as unique as a company brand. The following is more information about tenant improvement projects.

Who Pays for Tenant Improvement Projects?

Landlords usually provide allowances for tenant improvements, and allowances for spaces in shell condition are typically more generous, as compared with commercial space that has already been built out. The amount of allowance a tenant may receive depends on various factors. In markets with higher vacancy rates and less competition, for instance, tenant improvement allowances are typically more generous.

Getting help from a landlord for tenant improvements is not a given. It’s important for a business owner to read and understand the fine print in a commercial lease.

What May Be Included in a TI Build Out?

It can be expensive to customize an existing retail space. Any existing elements that make sense for the tenant should be kept, to cut project costs. For example, keeping existing doors and ceiling tiles can mean significant savings. The following are typical changes made when altering a commercial space for a new tenant:

  • Plumbing
  • Electrical
  • Heating, ventilation, and air condition (HVAC)
  • Accessibility upgrades
  • Removing existing walls and other demo work
  • Constructing new sheet rock walls
  • New blinds
  • Fresh paint
  • Carpeting, hardwood floors, or other types of new flooring
  • Side lights, which are windows placed alongside office doors

The types of things that aren’t usually included in tenant improvements are exterior signage on the building, office furniture, and upgrades classified as above standard.

Examples of Tenant Improvements

Things have changed in the last decade or two, as regards the basics of TI projects for office buildings. Previously, all that was required was to design private offices along the windows and add cubicles, a reception area, and storage. Advancements in technology have significantly altered the landscape of what a tenant may need. Environmental considerations and demand for open concept office design also affect the scope of tenant improvement projects.

  • For wireless connectivity with the Internet, power outlets need to be provided in abundance. In addition to power for wireless devices, power is needed for servers, scanners, printers, and more.
  • The productivity benefits of an open floorplan are tough to ignore. Offices need flexible open workspaces but also defined spaces, such as meeting rooms for specific groups.
  • LED lighting provides advantages for employees, those paying the electricity bill, and the environment. With LED lighting fixtures, workspaces are much brighter and yet less maintenance is needed and less power is consumed.

Contact Weaver Realty Group for Your TI Project

Weaver Realty Group offers experience and expertise in providing high-quality performance on durable tenant improvement projects. We use top craftsmen and approach projects with aggressive scheduling, allowing for needed flexibility. Our goal is to add value to your property by getting improvements up to specification as efficiently and cost-effectively as possible so that it can begin generating return on investment. Contact us at Weaver Realty Group today by calling 904-733-0039.