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The Commercial Tenant Improvement Process, Step by Step

A tenant improvement, often shortened to TI, is the construction that turns leased space into space your business can use. It sits at the intersection of your lease, the landlord's rules, permits and construction, so timing and communication are everything. This guide outlines the usual stages so you know what to expect and where delays tend to appear.

Plans being reviewed during a tenant improvement project

Start with the lease, not the drawings

The lease decides who pays for what and when. Look for the tenant-improvement allowance, the delivery condition of the space, the rent-commencement date, the landlord's approval rights over plans and contractors, and any required insurance. Bring your contractor in before the lease is final if you can; a walkthrough can reveal issues worth negotiating.

Design and landlord approval

Most landlords require plans to be approved before permit submission, and many maintain design criteria for finishes, signage, ceilings and mechanical systems. Drawings typically move from concept layout to construction documents. Every review round can add days, so early coordination pays off.

Permits and pricing

With approved drawings, your contractor finalizes pricing and the permit package is submitted to the local building department. Review times vary by jurisdiction and by how complete the submission is. Use the review period to place orders for long-lead items such as doors, glass, specialty lighting and equipment.

Construction: what typically happens

Construction usually starts with demolition, then rough-in work for framing, electrical, plumbing and mechanical systems. Inspections happen before walls are closed. Finishes, fixtures and equipment follow. A good schedule shows inspection dates and long-lead deliveries, so you can see the critical path.

Closeout and move-in

Finishing construction is not the same as being able to open. Final inspections, the occupancy approval, punch-list corrections, warranties, manuals and as-built documents all belong to closeout. Plan your move date after these are complete, not before.

  • Final building, trade and fire inspections.
  • Occupancy approval or certificate.
  • Punch-list walkthrough and corrections.
  • Warranty and maintenance documentation.
  • Keys, alarm codes and system training.
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Frequently Asked Questions

Quick answers on this topic

Who pays for a tenant improvement?

It depends on the lease. Landlords often provide an allowance, and the tenant covers the rest. Negotiating the allowance and delivery condition before signing is worthwhile.

How long does a TI project take?

Timelines depend on design, landlord approval, permits, equipment lead times and scope. We give you a schedule with these steps after reviewing the space and lease.

Can you start work before permits are issued?

Not for work that requires a permit. Some early activities, such as ordering materials, can begin during review to protect the schedule.

Planning a project?

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