When a business leases a new space, it rarely moves in as-is. Walls, lighting, restrooms and finishes are usually changed to fit the tenant. That work is called a tenant improvement, or TI. If you are talking to construction contractors near me for tenant improvements, this guide explains how leases, permits and schedules shape the project.
Key takeaways
- The lease and work letter set what gets built and who pays.
- Tenant improvement allowances cover part or all of the build-out cost.
- Permits and inspections are part of most TI projects.
- Plan the schedule backward from the move-in date.
What a tenant improvement includes
TI work changes a commercial space to suit a new tenant. It can be as simple as paint and carpet or as major as new walls, restrooms, HVAC changes and a full finish-out.
The lease and work letter
The lease usually includes a work letter. It spells out what the landlord will provide, what the tenant will build, how much the landlord contributes and who manages the work.
| Term | What it means |
|---|---|
| — | — |
| Shell or cold shell | Bare space with minimal systems |
| Vanilla shell or white box | Basic finishes and systems ready for tenant finishes |
| Turnkey | Landlord builds out the space to the tenant’s plan |
| TI allowance | Money the landlord contributes toward the build-out |
Who pays for what
It depends on the lease. Often the landlord provides an allowance and the tenant pays for anything above it. Some landlords build the space themselves. Read the work letter carefully, and ask your contractor to price the work so you can compare it with the allowance.
Permits and inspections
Most TI projects need a building permit, especially when walls, plumbing, electrical or mechanical systems change. In Dallas, the city’s Sustainable Development and Construction department handles permits. Inspections happen at key stages before the space can be occupied.
Planning the schedule
- Start with the lease commencement and move-in dates.
- Allow time for design, pricing and approvals.
- Account for permit review times.
- Order long-lead items such as storefronts, HVAC units or special finishes early.
- Plan inspections and a final walk-through before move-in.
Tip: Share your lease dates with your contractor at the first meeting. Every schedule decision flows from them.
Common TI challenges
- Discovering that existing systems can’t support the new layout.
- Long permit reviews delaying the start.
- Late design changes affecting cost and schedule.
- Working around neighboring tenants in occupied buildings.
TI versus remodel
A tenant improvement prepares a leased space for a specific tenant under a lease. A remodel is usually broader and may be done by an owner for their own use. The construction work can be similar, but the contracts, allowances and approvals differ.
Questions to ask before you sign the lease
Before signing, have a contractor walk the space with you. They can check the condition of the HVAC, electrical systems, plumbing and restrooms, and give you a rough idea of what your plans would involve. That helps you negotiate a fair allowance and avoid surprises. Ask the landlord for drawings of the space and any building rules for construction, such as work hours, insurance requirements and approved trades.
Coordinating with the landlord
Most buildings require the landlord to approve the plans and the contractor before work starts. Some require specific insurance, after-hours work for noisy tasks or the use of certain trades for fire alarms and roof work. Build these requirements into the schedule early. Good coordination with the property manager keeps the project moving and avoids last-minute stops.
Moving in smoothly
Plan your move-in around the final inspection and certificate of occupancy. Schedule furniture, IT and phone installs after construction cleanup. Ask your contractor for a punch list walk-through a week or two before move-in, so small items can be finished before your team arrives. A clean handover makes the first day in the new space a good one.
Keeping records
Keep copies of drawings, permits, inspection reports and warranties. They help with future changes and lease renewals.
Common allowance mistakes
Tenants sometimes assume the allowance covers everything, then find that furniture, cabling or signage are extra. Read the work letter closely and ask your contractor to price the full scope, so you can see the gap early.
Working with construction contractors near me for tenant improvements
Mark Daniel Exteriors offers tenant improvement build-outs, office build-outs and office renovation and retail construction and store build-outs. The company is insured for demanding commercial jobs and follows OSHA standards on site.
Planning a tenant improvement in DFW?
Tell us about the space, the lease dates and your plans.
FAQ
Does Mark Daniel Exteriors do tenant improvement build-outs?
Yes. Tenant improvement (TI build-outs) is a listed commercial service.
Does the company handle office and retail build-outs?
Yes. Office build-outs and office renovation, and retail construction and store build-outs, are listed services.
Is the company insured for commercial work?
The company states that it is insured for residential and demanding commercial jobs.
People Also Ask
Who pays for tenant improvements, the landlord or the tenant?
It depends on the lease. Landlords often provide an allowance, and tenants pay costs above it. Some landlords build the space themselves.
What is the difference between a tenant improvement and a remodel?
A tenant improvement prepares a leased space for a specific tenant under a lease. A remodel is usually an owner updating a space for their own use.
What do tenant improvements include?
They can include walls, doors, ceilings, lighting, flooring, restrooms, HVAC and electrical changes, finishes and signage, depending on the tenant’s needs.