5 Basic Things You Should Know About Tenant Improvements

⠀ MEDICAL OFFICE PROPERTY 5 Basic Things You Should Know About Tenant Improvements Completely Finished Buildout Or Turn - Key Buildout A ' turn - key ' buildout , in which the upgrades are expressly stated and the landlord simply conducts the permitting , and construction , obtains occupancy permits , and pays for everything , is the best position a tenant may have for improvements . This is more common in soft office markets . Usable Vs. Reusable Many tenants are surprised when they learn how much commercial real estate improvements cost . It's usually more than what they expected . When landlords don't provide a " turn - key " buildout , they'll either point to specific improvements or limit their participation to a specific cash amount or price per square foot . Scope Of Work Basic refurbishment may include repainting walls and doors ( possibly staining wood ) , replacing flooring and base , replacing or upgrading HVAC and / or electric systems , replacing or upgrading ceiling grids and / or lighting , tearing down or erecting walls , installing built - in workstations or welcome desks , and more . Architectural , project management , and permitting fees are examples of soft costs . Call For Information EO ( 949 ) 669-4230 Significant Completion It's difficult to predict when a buildout will take place . In big markets , architects often produce drawings ( not sketches ) in three weeks , the municipality may take several weeks to approve the designs , and the contractor may require other several months to complete the job . In some circumstances , modest renovations can be completed in a matter of weeks . Additional Expenses If the landlord is overseeing the work under a buildout allowance cap , make s ure that any project management oversight fees are kept to a minimum and that the work is divided among numerous contractors . This will stretch your all owance dollars . It's also a smart idea to plan for any costs that exceed the allowance level . [email protected]