When someone wants to move their business into a new location, they typically rent the space and renovate it, to fit their business` needs. These improvements are known as “tenant build out”, or “leasehold improvements” and represent an important part of the leasing negotiation between the landlord and tenant.
A tenant build out consists in custom interior finishes that may include demolition of existing walls, construction of new walls, adding new flooring, blinds or paint, making modifications to the electrical, plumbing or HVAC systems etc. The landlord covers only a certain amount of the costs, therefore it is important to understand, before signing the contract, how these improvements will affect your budget.
The right time for a tenant build out
It is very rare to find a commercial space that meets your business needs exactly; in most of the cases, interior build out is necessary, and the right time to do it is always at the beginning, right after you negotiate a favorable allowance and find a commercial general contractor Dallas specialist to help you maximize the potential of your space. The right time is also when you find financing sources for the build out project.