If you’re a business owner who rents or leases commercial property, then you may be familiar with tenant improvements. A tenant improvement (TI) involves custom cosmetic and functional alterations that a building owner or lessee makes to a commercial space such as a medical or dental office, warehouse, retail space, or other office types. Some of the most common modifications made during a TI involve improvements to the structure of the site like the walls, floors, and ceilings, as well as the operational parts of the building such as the electrical, plumbing, and ADA compliance. 

Tenant improvements are often essential for businesses moving into a space that does not accommodate their specific needs. For example, an incoming dental practice may need additional plumbing and other similar resources in order to function as a proper dental office. Take a look below to learn more about TIs from a qualified Reno tenant improvement contractor.

tenant improvement contractor

What Are Tenant Improvements and Allowances? 

In most commercial space rental situations, a lessee negotiates with the landlord for a tenant improvement allowance before occupying the space. A TI allowance determines how much the landlord is willing to pay for the renovations. And while you may think that the landlord is doing you a favor by paying for such accommodations, keep in mind that they benefit from the improvements as well. Not only do TIs improve a commercial space for the business, but they also elevate the look and overall functionality of the building which can be profitable for the landlord long after your lease ends. 

How Are TI Allowances Determined?

Such revisions are discussed between the landlord, lessee, and a project manager who will help you make negotiations based on the design, labor, time, and cost of the project. All of this information will be included in the lease agreement under an “Alterations and Improvements” clause set forth by the landlord and agreed upon by both parties. A tenant improvement allowance is often determined by the square footage of the site, meaning a dollar amount will be allotted per square foot of the space being occupied. 

What happens if you go over your tenant improvement allowance though? If for some reason, there is a deficit in funds and your TI’s go over the agreed upon cost, the lessee will be responsible for paying the remaining balance. Because of this, it’s important that you meet with a reputable, experienced tenant improvement contractor that can help prevent such occurrences from happening. 

Who Handles the Tenant Improvements?tenant improvements

Tenant improvements are undertaken by a licensed, professional TI contractor who can help assess your needs and provide solutions that will work for you, your business, and your landlord. A qualified tenant improvement contractor will have the knowledge and experience to make appropriate accommodations and alterations within the building that will help you operate at an optimal level while ensuring the building remains compliant with the terms laid out in the lease agreement. Depending on those terms, the business owner or landlord may oversee the progress and completion of the project, but a team of contractors, architects, and engineers will perform all of the work. 

What Is and Isn’t Included in the TIA?

Each tenant improvement allowance is different depending on the terms of the lease, your landlord, and the amount of work needing to be done. Typically, a TIA will pay for a majority of the construction expenses required to complete the build-out. This includes labor costs, material costs, and all other amounts towards adding permanent fixtures like partitions, doors, and windows. Other expenses that your TIA might be used for include legal costs such as permits and architectural fees. This will be determined by the landlord and should be negotiated prior to construction. 

Some things that are not part of the TIA include decor, furniture, signage, exterior alterations, and equipment that will be removed once the tenant’s lease ends.  

Connect with The Best Tenant Improvement Contractor in Reno – Stryker Construction 

Stryker Construction offers clients quality tenant improvements, office remodeling, and commercial build-outs. We provide all in-house designs ourselves including architectural plans, design assistance, budgeting, engineering, and of course, construction. Are you in need of a tenant improvement or build-out? Get in contact with us! At the very least we can lend you some extra information and educate you further regarding your options. 

Connect with us today to see how our Reno tenant improvement contractor can assist in your TI project!

Get an Estimate