🏗️ How to Manage Tenant Improvement (TI) Projects
🧱 Introduction
Tenant Improvement (TI) projects are a cornerstone of commercial construction — transforming blank spaces into functional offices, retail stores, or medical suites that meet tenant needs.
But managing a TI project requires careful coordination between property owners, tenants, and contractors to stay on budget, on schedule, and in compliance with lease terms.
At Nail & Hammer Construction Corp, we’ve delivered TI projects across Los Angeles that balance design vision, lease requirements, and ROI for both owners and tenants. Here’s what goes into managing them the right way.
🏢 What Tenant Improvements (TI) Cover
Tenant Improvements (TIs) refer to the customized build-outs or renovations made inside leased commercial spaces to suit a specific tenant’s use.
Common TI Scopes Include:
New walls, doors, and partitions
Flooring, lighting, and ceiling modifications
Electrical, plumbing, and HVAC upgrades
ADA compliance updates
Restroom remodels or additions
Signage and branding installations
TIs transform “vanilla shell” spaces into move-in-ready environments — whether it’s an open office, restaurant, retail storefront, or medical suite.
🧾 How Leases Affect the TI Scope
Before construction begins, it’s crucial to review the lease agreement. The contract defines who pays for what and sets limits on the work allowed.
⚙️ Key Lease Terms That Affect TI Projects:
TI Allowance: The amount the landlord contributes toward construction costs (usually per square foot).
Scope Approval: The landlord must typically approve the final plans before work begins.
Work Letter: A document outlining construction standards, materials, and permitted changes.
Delivery Condition: Whether the space is delivered as a “shell,” “as-is,” or partially improved.
💡 Tip: Nail & Hammer assists clients with lease review and preconstruction budgeting to ensure scope and funding align before the lease is signed — preventing costly change orders later.
🧩 Coordination Between Owners, Tenants, and Architects
The best TI projects succeed because all stakeholders work together from day one.
🤝 The Three-Way Partnership:
1. Tenant: Defines the space needs — layout, finishes, and brand requirements.
2. Owner/Landlord: Approves plans, funds the TI allowance, and ensures code compliance.
3. Architect & Contractor: Translates the vision into plans, coordinates permits, and executes construction.
Nail & Hammer’s design-build model simplifies this process. Our in-house team collaborates directly with architects, engineers, and owners to streamline communication, reduce delays, and ensure the project meets both aesthetic and lease requirements.
📐 TI Timelines: From Design to Occupancy
TI projects vary in duration depending on size, complexity, and permitting.
⏳ Typical TI Timeline:
1. Design & Planning: 4–8 weeks
Architectural layouts, MEP design, and city submittals (LADBS).
2. Permitting: 4–12 weeks
Depends on project type, scope, and LADBS review time.
3. Construction: 8–24 weeks
Build-out includes framing, MEP installation, finishes, and inspections.
4. Final Walkthrough & Punch List: 1–2 weeks
Ensures all parties approve completion before handoff or occupancy.
💡 Pro Tip: The fastest TI projects begin design during lease negotiation — allowing permit applications to start as soon as the lease is executed.
💰 Budgeting Strategies for TI Projects
Effective cost management starts with a realistic budget and clear priorities.
Key TI Budget Categories:
Construction Costs: Labor, materials, and finishes.
Permits & Fees: LADBS plan check, inspection, and city taxes.
Professional Fees: Architects, engineers, and consultants.
Tenant-Specific Fixtures: Furniture, signage, and IT equipment.
Contingency Fund: 5–10% for unforeseen conditions.
Smart Budget Tip: Leverage value engineering early in design — simplifying layout or material choices to stretch your TI allowance without compromising quality.
🧰 The Nail & Hammer TI Management Process
Our streamlined process ensures clarity, communication, and accountability from start to finish.
🏗️ Step-by-Step:
Pre-Lease Consulting: We assist owners and tenants in reviewing space conditions and estimating TI costs.
Design & Engineering Coordination: Work directly with architects and engineers to ensure plans meet city and lease requirements.
Permitting & Scheduling: Manage LADBS submittals and inspection coordination.
Construction Management: Oversee trades, schedules, and quality control daily.
Final Inspection & Handoff: Deliver a fully code-compliant space ready for occupancy.
With Nail & Hammer Construction Corp, you get a single point of accountability — saving time, money, and stress throughout the entire TI process.
✅ Conclusion
Managing a Tenant Improvement project isn’t just about construction — it’s about coordination, compliance, and collaboration.
By aligning lease terms, design intent, and city permitting early, both landlords and tenants can achieve a space that’s functional, beautiful, and financially sound.
At Nail & Hammer Construction Corp, we combine experience, efficiency, and transparency to make every TI project a success — from initial planning to final walk-through.
📞 Call 424-800-3704 today to discuss your next Tenant Improvement project in Los Angeles.
