When moving into a new location, accounting for necessary tenant improvements is one of the first concerns that business and commercial owners need to contend with. No matter how sleek a space, it’s going to need some construction work – but that planning process can be daunting and confusing.

When scoping out tenant improvements, follow these tips to create a concrete plan (no pun intended) that will ensure your space is ready for the grand opening. 

Planning Tenant Improvements

1. Evaluate the Space

The most critical step in setting a plan for tenant improvements is to review the existing space. It’s impossible to know what you’ll need to tackle unless you know what you’re working with. Work with the landlord to set up time to assess the condition of the space. You may need to set up several meetings – one initial review, and then a follow-up meeting after you’ve had a chance to scope out some of your plans based on the current condition and layout of the space.

2. Make 3 Lists: Must Haves, Nice to Haves, Add in the Future

You’re likely going to have a lot of items you want to tackle – but it might not make sense financially to bite off more than you can chew. You’ll also need to consider how much the landlord will be paying via a Tenant Allowance vs. how much you will be paying for out of pocket (more on that later).

The best way to start planning is with a good old-fashioned list: and we like the simple, 3 step approach. Write down everything you want to do in the space, and sort them into three categories: Must Haves, Nice to Haves, and Add in the Future. Must Haves and Nice to Haves are what you want to account for now when looking at a budget. Add in the Future are those projects that can wait, if need be.

The most common Must Haves include:

  • Flooring and/or ceiling improvements
  • Lighting replacements or enhancements
  • Layout changes – new walls or doors (or removing existing structures)
  • New painting and other aesthetic improvements
  • Plumbing and electrical work

However, your Must Haves will likely be determined by the condition of the current space – which is why it’s important to evaluate it in step 1, before creating these lists.

3. Determine Budget

Setting a budget and sticking to it is always the “fun” part of any commercial project. On average, most commercial building improvement costs range between $15 and $40 per square foot, but the cost may be higher depending on the building.

However, determining an exact budget number requires a thorough review of the property and your to-do items you identified in step 2. A commercial contractor can review the location with you and provide a more specific estimate.

Once you have your estimated budget, it’s time to talk about tenant allowances (TIA) with the landlord. They may have a specific type of TIA they offer to all tenants – most often, it’s a specific dollar amount per square foot of the rented space – but some landlords may be willing to negotiate other TIA options. For a detailed breakdown of the tenant allowances, check out our blog: How to Estimate Your Tenant Improvements Before You Sign a Lease

4. Find an Experienced Commercial Contracting Partner

The final part of your planning process is identifying the commercial contractor to work with during the actual renovation process. You want to start looking for contractors while in your planning phase. At Titus, we help prospective clients scope out their budgets and identify key to-dos before we ever put hammer to nail. An experienced commercial contractor like Titus can help you create a commercial renovation plan that maximizes your end result while optimizing your budget.

Titus Commercial Remodeling Services

At Titus Contracting, our goal is to create comfortable workplaces that help you attract new business and new talent. With decades of experience, let Titus Contracting help with your remodeling, build out needs. We offer additions, tenant construction, retail build outs, construction management, custom design-and-build remodeling services.

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Titus Contracting is a full-service remodeling company offering commercial and residential construction. We have an office in Burnsville, Minnesota and work throughout the Twin Cities.