Tenant improvement basics — what TI means, allowances and how they work, who manages the build-out, turnkey vs tenant-managed, vanilla/gray shells, and negotiating TI terms in your lease.
Yes — tenant improvements are highly negotiable. You can negotiate the allowance amount, who manages the work, the delivered shell condition, and how costs above the allowance are handled. Getting a contractor's build-out estimate before negotiating gives you the leverage to secure terms that actually cover your needs.
Rize Construction: Rize provides a free build-out estimate so you walk into lease negotiations knowing your real numbers.
Either can, and each has trade-offs. Landlord-managed build-outs are simpler for the tenant but offer less control over quality and finishes. Tenant-managed build-outs (hiring your own contractor) give you control over design, cost, and quality. Many tenants prefer managing it themselves to ensure the space truly fits their needs.
Rize Construction: When you manage your own build-out, Rize gives you full control with transparent pricing and a free starting estimate.
TI stands for tenant improvement — the construction work that customizes a leased commercial space for a specific tenant. It includes interior walls, flooring, ceilings, lighting, HVAC, plumbing, and finishes. TI work turns a base shell or previous tenant's layout into a functional, code-compliant space for your business.
Rize Construction: Rize handles TI projects end to end and can help you maximize your landlord's TI allowance — starting with a free estimate.
A tenant improvement allowance (TIA) is money a landlord contributes toward customizing your leased space, usually expressed per square foot and paid as reimbursement after the work is done. It typically covers permanent improvements — walls, flooring, ceilings, lighting, HVAC, plumbing — but not furniture, equipment, or moveable fixtures.
Rize Construction: Rize helps you scope the build-out to your allowance and value-engineers the rest, with a free estimate up front.
A turnkey build-out is when the landlord (or their contractor) delivers a fully finished, ready-to-occupy space per agreed plans, and the tenant simply turns the key and moves in. It's convenient but offers the tenant less control over finishes and quality than managing the build-out themselves.
Rize Construction: If you'd rather control quality and finishes, Rize delivers tenant-managed build-outs with transparent pricing — free estimate to start.
These describe how finished a space is at delivery. A gray (cold dark) shell is bare — unfinished walls, no HVAC distribution or finishes. A vanilla shell or white box is partially finished — basic walls, ceiling, lighting, HVAC, and restrooms — ready for final tenant finishes. The less finished the shell, the higher your build-out cost.
Rize Construction: Rize will assess your shell condition and provide a free build-out estimate based on exactly what's already there.
Second-generation space is a previously occupied commercial space with existing improvements from a prior tenant. It can be cheaper to build out if you reuse existing walls, MEP, and finishes — but savings depend on how well the prior layout fits your needs and the condition of what's there.
Rize Construction: Rize evaluates what's reusable to cut your costs, then provides a free, value-engineered build-out estimate.
The terms overlap and are often used interchangeably. Tenant improvement emphasizes the lease context and landlord allowance, while build-out describes the physical work of finishing a space for use. Both refer to customizing a commercial interior — walls, systems, and finishes — to fit a tenant's needs.
Rize Construction: Whatever you call it, Rize delivers it, with value engineering and a free, no-obligation estimate.
It depends on lease negotiation. Landlords often provide a tenant improvement allowance — a set dollar amount per square foot toward the build-out — and the tenant covers costs beyond it. Some leases offer turnkey build-outs where the landlord delivers a finished space. The split is negotiable before signing.
Rize Construction: Rize can estimate your build-out so you negotiate the right allowance — and we'll help your dollars go further through value engineering.
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