Tenant improvements, also known as Leasehold improvements are the custom interior remodeling a landlord or tenant makes to a commercial rental space (office, retail, or warehouse space). The amount build out to be completed or the tenant allowance needed to do the tenant improvements is typically negotiated up front between the landlord and tenant and is part of the overall commercial lease agreement.
Before signing lease it’s important that you understand what the tenant improvements will cost because landlord will agree to only cover the cost of $xxx amount. If you are a new business you want to keep your costs low so you may want to find a space that does not need much interior finish out work. Depending on the spaces previous use the space could need A LOT of work or not much work at all to suit your needs. They key is however to get a preliminary construction bid before signing a lease so you have an idea of what the finish out cost will be AND how much of the tenant improvements the landlord is willing to pay for.
If you are in need of a bid on a space you want to lease or you are a landlord that would like for us to look at one of your properties, Give us a call and we will be happy to look over the project and give you a bid.