🧱 What to Include in Your Lease Build-Out Checklist

Lease build-outs—also known as tenant improvements—can be one of the most exciting (and stressful) parts of moving into a new commercial space. Whether you're a tenant preparing to customize your new office or a property owner managing multiple units, having a clear checklist is essential to staying on schedule and within budget.

Here’s a practical guide to help you navigate the build-out process and ensure nothing gets overlooked.

🗂️ 1. Review the Lease Terms

Before you plan a single design element, carefully review your lease agreement. Understand:

• What improvements are permitted

• Who pays for what (tenant vs. landlord contributions)

• Timelines for project completion

• Required approvals

Many leases include a Tenant Improvement Allowance (TIA), which covers part of the build-out cost. Clarify what’s covered and what’s out of pocket.

🛠️ 2. Define Your Scope of Work

This is your “wish list.” Outline everything you want done, including:

• Demolition of existing features

• Interior walls and layout changes

• Electrical and lighting upgrades

• Flooring and ceilings

• HVAC adjustments

• Plumbing or data needs

• Paint, finishes, and custom cabinetry

This scope will guide your contractors, architects, and budget.

👷 3. Choose a Qualified Contractor

Select a licensed, insured contractor with experience in commercial build-outs. Ask for:

• References and past project examples

• Estimated timelines

• Licensing and insurance details

• Understanding of local codes and permit processes

The right contractor will help streamline approvals and prevent costly errors.

💰 4. Budget with Buffer

Estimate total costs based on your scope, and include:

• Construction costs

• Permits and fees

• Architectural/design services

• Equipment and furnishings

• 10–15% contingency for unexpected changes

A detailed contractor quote will help clarify where your allowance ends and your own investment begins.

📝 5. Secure Permits and Approvals

Permit requirements vary by municipality. Most commercial build-outs need:

• Building permits

• Electrical/plumbing permits

• Fire safety inspections

• ADA compliance approval

Your contractor should help you apply, but delays can occur—so plan accordingly.

📐 6. Finalize Layout and Design

Work with your contractor or a designer to finalize:

• Floorplans

• Material selections

• Fixtures and finishes

• Branding elements (signage, paint colors, etc.)

These decisions should align with both your vision and your budget.

📆 7. Set a Realistic Timeline

Build-outs often take longer than expected. Account for:

• Permit wait times

• Material delays

• Weather (for exterior work)

• Scheduling subcontractors

Work backward from your target move-in date to ensure sufficient lead time.

✅ 8. Create a Close-Out Checklist

Before final payment, make sure the job is complete:

• Final inspections passed

• Punch list items addressed

• All systems functioning

• Warranties and documentation provided

• Space is clean and ready for move-in

Don’t sign off until everything is verified.

🔑 Final Tip: Communicate Constantly

Frequent updates between tenants, contractors, property managers, and owners are essential to keeping your build-out on track. When everyone’s on the same page, the process goes smoother—and avoids surprises.