Tenant Improvement and the Needs Assessment Process

READ MORE \| Renovation or New Construction? How to Decide What’s Best for Your Business

If you’re a business owner leasing a property space, you need to know about a process called tenant or leasehold improvement. This is a series of actions taken to customize a rental space based on the specific needs of the tenant. this process begins with the needs assessment phase.

Initial Assessment

The initial assessment is the first step in determining your specific needs for your tenant improvement project. To begin, your contractor will conduct an evaluation of the space. You’ll have a conversation in which the following factors will be determined:

• Project vision
• Goals and business objectives
• Preferred design elements
• Functional aspects

Every business’ needs will be different based on what type of operation is being run, so talking with a professional is an essential step in determining your unique renovations. Additionally, the initial assessment is used by the contractor to determine both the site’s limitations and opportunities.

Budget Planning

After you and your contractor discuss the build’s needs, you can come to an understanding about the project’s budget. Architectural design expert Maor Greenberg writes that this is when you’ll determine the cost of each specific improvement, including materials, labor, permits, and any unforeseen expenses.

Next, you’ll determine your tenant improvement allowance (TIA) with the landlord of your building. This is the amount that your landlord is willing to spend on improvements.

The last step in the budget planning process is simply to finalize the decisions you and your contractor made in the process. Review the project’s budget, making sure it makes sense with your established TIA. Add or subtract funds from the budget as needed.

Visit our Contact page to begin assessing your project’s needs with a construction professional today.

Notifications