What are tenant improvements?

Tenant improvements or TIs, as they’re called, are the improvements to the interior of the commercial space that make it suitable for the tenant to occupy the space. Who performs the tenant improvement depends on the property type, the locale, and generally your negotiating power. If it’s important for you to have the tenant improvements done in a particular fashion, as a tenant, you might want to take control of that process and hire architects or general contractors who have specific experience, such as for certain medical uses. Generally though, in an office environment, the landlord will perform the tenant improvements for you and deliver the space when it’s ready. It’s important that process goes smoothly and timely so the tenant can get in on time and there’s no disruption in their business. A broker will help a tenant negotiate the amount of money the landlord will pay to build out the space and also how quickly that will be done and whether there will be penalties if it’s not done in a timely fashion.