Commercial Tenant Improvement Checklist Before Signing a Lease

Review the building, utilities, landlord criteria, code issues, schedule, and cost risks before committing to a commercial lease and build-out.

Confirm the space can support the intended use

A space that looks suitable may not have the required occupancy classification, parking, utility capacity, ventilation, plumbing, fire protection, accessibility, grease handling, loading, or egress. Confirm use restrictions with the landlord and jurisdiction before relying on a conceptual layout.

Document existing conditions

Obtain available drawings, surveys, utility information, roof and equipment data, fire-alarm and sprinkler records, and prior permits. Walk the space with the design and construction team. Existing conditions hidden above ceilings, below slabs, or inside walls can affect budget and schedule.

Read the work letter and building standards

The lease should clearly identify landlord work, tenant work, allowances, approval rights, permitted contractors, insurance requirements, access hours, shutdown procedures, restoration obligations, signage rights, and closeout documentation. A vague work letter can create expensive disputes later.

Build the schedule backward from opening

Include design, landlord review, pricing, revisions, permit review, long-lead procurement, construction, inspections, utility releases, furniture, technology, equipment installation, staff setup, and contingency. Construction duration alone is not the complete opening schedule.

Test the budget before lease execution

Prepare an early budget that includes construction, design, engineering, permits, testing, utility fees, furniture, equipment, technology, signage, security, moving, financing, contingency, and escalation. Compare the total investment to the lease term and business plan.

Protect the opening date

Avoid committing to a fixed opening date until critical approvals and long-lead items are understood. Negotiate access, rent commencement, allowance timing, and extension rights with realistic design and permitting durations in mind.