Our lives and circumstances are constantly evolving. In an effort to keep up with both practical and sustainable engineering, the term ‘tenant improvement (TI) construction’, or ‘leasehold improvement’, has become quite popular.
In essence, tenant improvement construction refers to the alterations a building owner makes to a space to ensure it is better suited to the needs of the tenant. There are many things that can factor into the configuration of a work or living space. These could include technological advancements, a changing workforce, environmental requirements, and better usability.
However, the process can be intricate. What needs to be improved or changed? What important questions should you ask your tenant improvement contractors? What type of commercial improvements can you actually make? Everything should be thoroughly researched before your construction project takes flight.
Trends Behind Tenant Improvement Construction
There are various factors that contribute to the need for tenant improvement construction. These range from improvements in technology to a younger generation in the workplace.
To stay competitive when it comes to attracting top talent, companies have to be in the frontlines with regard to the type of work environment they offer. In other words, companies have to evolve with every generation to stay relevant. This means they have to embrace new trends.
These trends often impact the design of workstations, amenities, floor plans, or multi-purpose spaces. This is because they influence how people communicate, collaborate, and stay productive.
Landlords also have to ensure that their facilities stay competitive. No matter whether it be retail space, medical facilities or professional offices. By catering to tenants’ wants and needs through improved amenities, landlords can ultimately minimize their vacancy rates.
Changes in the building can be aesthetic but can also include practical modifications. For example, these might include things like enhanced temperature control and better air quality.
Lastly, landlords have to keep sustainability in mind. A building that is more environmentally friendly is often more energy efficient. A lot of tenants prefer sustainable living above other optional luxuries. This means that landlords who are not interested in investing in green living might get the short end of the stick when it comes to attracting new tenants.
Different Types Of Commercial Improvements
When it comes to construction, the most popular commercial improvements include:
- Interior Improvements
- Landlord Improvements
- Tenant Improvements
Interior improvements are usually done in a commercial space to cater to a new tenant’s business needs. Improvements can include changes to the lighting, walls, ceilings, floors, and other interior alterations. Landlord improvements include renovations a landlord makes to a space for it to be liveable and ready for the next tenant.
Lastly, tenant improvements refer to changes or alterations that will make the property better suited to the tenant’s needs. These are generally overseen by the landlord or the tenant. The lease agreement between the landlord and tenant usually states who is responsible for overseeing the improvements. But, more often than not, the tenant is in charge as they usually fund the project themselves.
Managing A Tenant Improvement Construction Project
When planning for a tenant improvement construction project, one can usually break the project down into three parts:
- Cost estimation
Seeing as most tenants take on the responsibility of overseeing the construction project themselves, there are some critical elements that they should be aware of. First, there is no need to figure everything out on your own. By hiring an experienced tenant improvement contractor, you can trust that all your wants and needs will be met.
When hiring a tenant improvement contractor, it is always important to ensure they are a licensed contractor. Make sure that they can provide you with examples of and references to their previous work and clients. It is also important to assess their level of experience and whether they are the right fit for the job.
A contractor can zone in on exactly what type of improvements you need. They will also be able to assess how long the project will take and how much it will cost. Since every project has a budget attached to it, it is important to communicate your budget expectations at the very start of the project. This allows both you and your contractor to be on the same page.
When hiring a general contractor, you also get to decide how involved you want to be. However, even if you want to leave it all in the capable hands of a construction expert, you should still remember to forward all of the relevant invoices to your landlord for tax purposes.
The Bottom Line
At Chad Fisher Construction we are experts in tenant improvement construction. We serve the commercial construction needs of the Pacific Northwest through hard work, honesty, and integrity in every project we take on. Contact us to see how we can help with your tenant improvements construction project.