Tenant build out refers to the custom interior finishes a landlord or tenant makes to an office, retail, or warehouse space. The amount of build out to be completed, also called the tenant allowance, is typically negotiated up front between the landlord and tenant as part of the overall commercial lease agreement. Building out a tenant space is typically easier than standing up a new building from scratch, but there are still a few things landlords and tenants need to know. Regardless of the tenant allowance agreement, here are three tips you can use to achieve a successful commercial tenant build out.

Make a Budget- There may be some haggling involved to determine which party is paying for what, but at the end of the day you need to come to an agreement on the total price of the build out before moving forward. This number will help guide the process moving forward and serve as a reality check if the design planning gets a little carried away.


Look at All Your Options- When you’re getting bids, the cost of materials will be one of the biggest variables. Make sure you look at the different ways to build out the project. See how much it would cost to use top of the line materials, then see how much you can save by using more economical options. This will help you establish your range of prices so you can find the best option.


Think Big Picture- If the lease is a multi-year deal, it may not be necessary to complete all the renovations in one fell swoop. Breaking up the build out into a few phases can help get more bang for your buck. However, the downside is having to deal with construction while trying to run the business.


A commercial tenant build out is a great way to improve the value of the building and improve the relationship between the tenant and the landlord. If you’re in need of tenant build out services, call Cowen Construction.