Tenant Improvements Explained
What are tenant improvements? If you are considering an investment in a commercial property, this is a term you will want to be familiar with, before you sign on the dotted line of a lease agreement. Here is an overview of tenant improvements explained.
Tenant improvements are changes made to commercial real estate, or commercial building and typically done by the landlord unless otherwise negotiated in the terms of your lease agreement. These improvements are done to benefit the tenant and the commercial space. Tenant improvements can include flooring, wall coverings or paint, updated bathrooms or kitchens, new ceilings, replacing air conditioning units, private cubicles, and any other interior items found in a commercial building, office space, restaurant, or industrial building.
The cost of tenant improvements will be negotiated between the landlord and the tenant, and you will find them will be spelled out in detail, in your lease agreement. However, depending on the landlord and the terms in your lease, you may be able to renegotiate these costs or receive a reduction in monthly rent costs, if it means you will be renewing your lease agreement. But this is a conversation you will want to have with your landlord, if your commercial property needs tenant improvement.
Although the costs are negotiated, the tenant typically has a say in who is hired and what is done for building improvements. Tenant improvements can run between $5.00 and $15.00 per square foot, but the final cost will depend on how the work that is being done, what is being updated and the materials selected.
If you are considering tenant improvements, whether you are a landlord or a tenant, let our forty years of construction experience help you make it a rewarding experience. We know that most important part of any commercial construction project is time and money, and our goal is to provide accurate bids, specific timelines, while offering the latest trends and technology available.
Please feel free to visit us online at www.KnippCommercial.com and look at our online portfolio. Our experienced team members are standing by, and ready to assist you with your tenant improvement project.