Questions Commonly Asked About Tenant Buildout

Common Questions

Tenant build outs are very common components of property lease agreements, but they still raise lots of questions – here are a few of the most commonly asked ones:

  • What type of buildout should you choose – the two most common forms of build out are interior improvements, aimed at transforming the interior of the leased space to meet the tenant’s business needs and exterior improvements usually handled by the landlord and aimed at preparing the space for the tenant, cleaning the space and repairing whatever needs repair;
  • Who manages the build out process – the management of the buildout process is usually the tenant’s responsibility, while the payment for the improvement work is made by the party stipulated in the lease agreement, either by the tenant or by the landlord;
  • Duration-related questions – the time frame for the build-out is essential for the tenant as well as for the landlord. The completion deadlines need to be negotiated and the contracting parties need to be on the same page about this aspect before signing the agreement. The contract needs to include remedies for either of the parties in case the other part fails to hold up their end of the deal – each day of delay costs money.  For best results and a great contractor call https://jntconstruct.com/dallas-commercial-and-tenant-build-outs/.

Updated 8/6/2021

Checklist For Starting Your Tenant Build Out

Tenant Buildout Checklist

Since finding a commercial space that meets your needs exactly is almost impossible, tenant improvements are in order, before starting to use it. These improvements consist in various custom interior finishes that must be negotiated up front with the landlord and written in the lease agreement. They may include:

  • Installing new flooring (hardwood floor, laminate, carpet…)
  • Demolishing existing walls or constructing new ones
  • Re-painting the walls
  • Making modifications to the electrical, HVAC or plumbing systems
  • Other upgrades previously negotiated.

If you are in the position to start your tenant build out, make sure to communicate properly with the landlord and find out how much of the costs are they willing to cover. Also, it is good to know that some operations are not typically included in a tenant build out: office furniture, data cabling, phone cabling and other upgrades considered above standard.

You must also be aware that for starting your tenant build out, you need a lot of documents from property management, as well as from engineering: appropriate certificates, licenses, insurance, declarations, construction plans reviewed and approved, a proven Dallas general contractor and sub-contractors, permits, confirmations, other plans if necessary (such as fire safety plans), as well as a detailed schedule.

Updated 8/3/2021