Commercial space, like any other place where we spend our time, always has room for improvement. In our homes, we remodel kitchens and bathrooms and update décor. In our commercial space, where we work, we might consider doing the same things or upgrading for business needs. It is always nice to have something new and updated in our offices. After all, we spend so much time there.
If you are a tenant who is leasing your commercial space, you cannot make major improvements to your commercial office space without consulting the landlord. After all, your landlord owns the property. But most landlords typically understand that tenants require certain office customization to meet their business needs. From the quality and placement of electrical outlets to telecommunications ports to office layout and design, the landlord expects there to be some changes. Even if you have been leasing your commercial space for a while, your landlord knows that things may need upgrading and updating from time to time.
The Tenant Work Letter is a document that ultimately defines the obligations and responsibilities of both tenant and landlord. It specifies the work to be done, who will complete it, and the amount of money for which each party is responsible.
Many improvements are done through what’s commonly known as a turnkey build out. In this agreement, both tenant and building owner decide all of the details of the tenant improvements prior to executing or renegotiating the lease. Another option is a tenant improvement (TI) allowance where the landlord and the tenant negotiate the cost per square foot based on the tenant’s specifications for a build out or major improvement. With a TI, it is up to the tenant to make the improvements at the agreed-upon cost and on time.
So, if you’re thinking about making improvements to your commercial space, you will want to plan ahead. If your lease is due soon and you have plans to renegotiate, consider including your improvement plans, as well. It may take a little time for your improvements to be completed, but once they’re done, you can enjoy your commercial space even more.