Most new lease transactions contain some type of tenant improvement, or TI allowance, provided by the building owner. A TI allowance allows the tenant to modify or improve a commercial or retail space to fit the needs of his business. TI allowances often come with strict rules for its use and generally cover three areas: 1. design, engineering and project management fees, 2. permit fees and, 3. actual construction costs.
The tenant has sole responsibility to see that the work is completed within budget and on schedule (the landlord is off the hook), but it gives him control over the process and is likely to result in lower cost and a higher quality space. If improvement costs come in below the allowance amount the tenant is often able to use the difference to upgrade materials, add fixtures, etc. The flip side is that any cost overruns become the sole responsibility of the tenant. And of course the impact of an unmet completion date can be catastrophic. With these things to consider the right contractor can make all the difference.
It’s common for tenant improvement projects to require a fast turn-around and the work often occurs around occupied areas. Tenant improvements can also differ from other projects in planning, change orders, and closeouts. But the biggest factor by far is the speed of the work, often completed in days as opposed to weeks or months. One of the best ways to ensure your project is successful is hiring a contractor who is experienced and knowledgeable in tenant improvement projects
Although the tenant improvement approach is necessary when the buildout has specialized needs the landlord is not equipped to handle such as; high-end finishes, laboratory space, or unusually high levels of security or technology it can also benefit a tenant seeking standard quality office space at the most affordable price.
Greater Pacific Construction has been a leading Tenant Improvement Contractor in Orange County since 1989. Family owned and operated, Greater Pacific creates the most functional and affordable TI which improve your workflow and profitability.