COMMERCIAL TENANT IMPROVEMENTS
COMMERCIAL TENANT IMPROVEMENT
No matter if you want to open a restaurant, a boutique, art gallery, or gym – or if you are the building owner and you want to lease to any business, there’s a good chance the commercial building will need some kind of commercial tenant improvements. A commercial kitchen area may need improved ventilation, improved lighting for the boutique selling clothes, or making sure there is enough open space for gyms treadmills.
There are concerns not only for the tenants who want to occupy the space, but for the landlords who want to make the space more attractive for potential tenants.
Every company has its own unique space planning and finishes needed for their business. Developers and property owners typically provide an unfinished or partially finished space along with an allowance that the new tenant can use for their office build-out. This aspect of the commercial construction industry can be confusing, as it uses terms and concepts that few business owners have experience with. The most common confusion arises over the state of the space before starting the build-out. Typically, you will see spaces referred to as grey shells (sometimes known as dark shells) or vanilla shells (sometimes known as white box).
WHAT DOES TENANT IMPROVEMENT ALLOWANCE MEAN?
The most coveted landlord incentive is the tenant improvement (TI) allowance – an agreed upon amount the landlord is willing to pay for to renovate or retrofit the space for a tenant’s specific needs.
A commercial tenant improvement allowance is a fund the landlord provides to pay for improvements to the leased space. These allowances often pay for costs incurred when a tenant moves to the new property, such as updating flooring, windows, doors, electrical, plumbing…and anything else that is a permanent or semi-permanent change.
VANILLA SHELL OR WHITE BOX COMMERCIAL TENANT IMPROVEMENTS
Sometimes known as White Box, Vanilla Shell commercial tenant improvements are upgrades building owners make to ready a space for a tenant. This type of improvement includes exterior walls, windows and doors, roofing, standard lighting and electrical, basic heating, ventilation, and air conditioning (HVAC), concrete floor, restrooms and drinking fountain, hot water, code fire protection and stairs and elevators. This provides a building or office interior for commercial owners to quickly have space ready for tenants to finalize.
GREY / DARK SHELL COMMERCIAL TENANT IMPROVEMENTS
Typically known as Grey Shell tenant improvements, the space is an open box (shell) with no improvements inside. Dark Shell usually have no ceiling grid, no drywall on the exterior walls and no stub-outs for utilities or systems. In this situation, you are responsible for every aspect of your build-out. Both the cost and time to do a gray / dark shell tenant improvement can be substantial, as compared to a vanilla shell or white box improvement.
TENANT BUILD-OUT
Chances are when you are looking to move your business to a new building or suite in an office park; you will need to first renovate the space to fit your business’ needs. The process of finishing this space is known as a tenant build-out.
A vital component of any lease negotiation is the tenant build-out or improvement allowance provided by the landlord to renovate an office space for the tenants’ specific needs. The amount of allowance will depend on several things such as: the length of the lease and the negotiated rental rate. During the negotiations of the lease, it is important to determine:
Upon the final negotiation and design, Sightline Builders will begin to facilitate the commercial tenant improvements of your office, boutique, or retail space that will transform the building from an empty shell to a thriving business.
CONTACT US TO GET STARTED ON YOUR PROJECT TODAY
Our commercial builders understand the importance of having a beautiful space that fits your business or lifestyle needs. With our dedication to high-quality work, responsive communication, and commitment to integrity, we’re confident our services will exceed your expectations. Contact us today and learn more about how Sightline Builders can help you with all your tenant improvements and office build-out needs.
Looking to rebrand your business or perform a commercial renovation or remodel to maximize the efficiency of the space currently available. A commercial remodel can be an extensive project many businesses choose to undertake instead of building an entirely new facility. This can be a lucrative move for a company that needs to grow but does not have the financial means to invest in an entirely new location and building. Contact Sightline Builders to Discover your Options and begin discussing the stages of your commercial remodel.