What is a tenant improvement?
A tenant improvement is the construction that turns a leased commercial space into something a specific tenant can operate in. Partitions, ceilings, flooring, finishes, lighting and the mechanical and electrical work that follows the new layout. It is usually funded partly or wholly by an allowance negotiated into the lease.
The allowance is a lease term, not a budget
A tenant improvement allowance is a sum the landlord contributes, often expressed per square foot. It is negotiated with the lease and it is rarely the whole cost of the fit-out.
What it covers is defined in the lease. Some allowances exclude furniture, low voltage cabling, signage and anything the next tenant would not inherit. Read that list before pricing the design, because the gap between the allowance and the real number lands on the tenant.
What TI work usually includes
Demolition of the previous layout, metal stud partitions, acoustical or hard-lid ceilings, doors and hardware, flooring, paint, millwork, and the coordination of mechanical, electrical and life-safety work to the new plan.
Sprinkler heads and ductwork have to move when walls move, and that coordination is usually where a schedule is won or lost.
What decides the schedule
Landlord and building approvals, permit and inspection timing, and long lead items such as doors, glass and light fixtures. Building rules on work hours, elevator use and deliveries matter more than people expect in an occupied building.
We run TI work as one package with one project manager, phased after hours where the building or the neighbouring tenants require it.
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