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What is a 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 tenant build-out.

An important 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 the 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:

What improvements will be made?
Who will pay for these tenant build-outs?
Who is in charge of overseeing that the work is done?
At the end of the lease, how does the tenant need to leave the space? Must he or she return it to its original specifications? Or, do only certain aspects of the improvements need to be removed or altered?
The Structure of Tenant Build-Out

Tenant improvement allowances are usually structured in on of two ways, turnkey build-out or stated dollar amount. With turnkey build-out, the landlord would cover all the costs associated with the tenant build-out as part of the agreed upon rental rate and space plan. When a stated dollar amount is structured to allow for tenant build-out, the landlord provides a flat dollar amount for the tenant to use towards renovations.

Using the Right Tenant Build-Out Contractors

No matter what the structure of the tenant build-out, your project is only as good as your general contractor. After all, the contractor is responsible for the workmanship of the construction, ensuring that all items on the punch list are complete and accurate, and that any updated drawings or changes are handled in the proper manner. Finally, the contactor is responsible for meeting budgetary constraints and keeping the project on a specific timeline.

Whether your industry is retail, office space, healthcare, education, science & technology, government or one of dozens of other industries, you can count on AFSCG, the leading Olando general contractor, to solve your greatest challenges.

No Commercial Job Too Big or Too Small for AFS GC

Implementing solutions for projects of all sizes, AFS General Contracting offers a wide range of services. Whether you’re looking to renovate, repair, build-out or construct a new building, AFS GC is the only contractor you need to know. Contact us today at 407-487-4546

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