tenant allowance

Tenant Improvement Construction: The Short-Schedule Specialty That Fills the Gaps Between Major Projects

Tenant improvement (TI) work — building out space inside existing shells for new tenants — has different economics, schedules, and coordination dynamics than ground-up construction. Short schedules, occupied adjacent space, landlord allowances, tenant-specific design, and constant change orders characterize the work. Contractors who understand TI dynamics run profitable TI practices; those who treat TI as miniature new construction usually lose money. Understanding the differences is the key.