Tenant Improvements: What Business Owners Need to Know

When leasing a commercial space, few decisions matter more than how it’s built out. Whether you’re opening a brokerage office, launching a care facility, or upgrading an existing location, tenant improvements (TIs) can determine how well your space supports your goals.

Understanding what’s involved—from planning and budgeting to minimizing disruption is key to making smart decisions. Here’s what every business owner should know about tenant improvements

What Are Tenant Improvements (TIs)?

Tenant improvements refer to customized changes made to a leased commercial space to suit the specific needs of the tenant. This might include building out offices, installing specialized systems, upgrading finishes, or improving accessibility.

TIs are especially common in:

• Office spaces
  
• Medical or wellness clinics
  
• Restaurants or retail stores
  
• Residential care and support facilities
  

Landlord vs. Tenant Responsibilities

One of the first steps in any TI project is determining who’s responsible for what.

Most lease agreements spell out which improvements the landlord will cover (often structural, HVAC, or ADA compliance) and what’s left to the tenant (like branding elements, layout modifications, or finish upgrades).

Some tenants negotiate a tenant improvement allowance (TIA) with the landlord—an amount the property owner agrees to reimburse for approved construction costs. Understanding your lease terms up front can save you money and avoid confusion mid-project.

Budgeting and Planning for TIs

TI costs can vary widely depending on scope, location, and building conditions. Key factors that influence your TI budget:

• Type of business (medical vs. office, for example)
  
• Building age and existing infrastructure
  
• Code upgrades (ADA, fire safety, etc.)
  
• Timeline and phasing
  

At Erickson Construction, we work with clients early in the process to align the design with both function and financial goals. We often collaborate with architects and landlords to ensure expectations are clear and timelines are realistic.

Minimizing Disruption to Your Business

Many TIs happen while a business is still operating, which means logistics and communication are everything.

When John L. Scott in Port Orchard needed to renovate their 6,000 sq. ft. brokerage office, it was essential to keep the team working and client meetings uninterrupted. Our team phased construction carefully, worked off-hours when necessary, and maintained a clean, professional job site.

Every business is different, but our priority is always the same: get the job done without slowing yours down.

Real-Life TI Examples

We’ve helped clients across a range of industries make the most of their leased space:

• West Sound Treatment Center’s Fuller House: A sensitive residential upgrade that needed safety, privacy, and functionality at the forefront.
  
• John L. Scott Port Orchard Office: A modern office remodel with zero downtime for brokers and support staff.
  
• Kitsap-area offices and wellness spaces: From break rooms to conference rooms, we’ve helped transform tired spaces into modern, efficient hubs for business.

How Erickson Construction Supports Tenant Improvements

We bring a solutions-first mindset to every tenant improvement project, whether we’re coordinating trades, navigating permitting, or solving unforeseen issues behind the walls.

With Erickson Construction, you get:

• A single point of contact
  
• Real-time project updates
  
• A respectful crew
  
• Quality that reflects your brand
  

We know that leased spaces are an investment, and we treat your project like it’s our own.

Making the Most of Your Leased Space

Whether it’s a brokerage or a residential care facility, tenant improvements are your chance to build a space that truly works for your business. And with the right contractor, it doesn’t have to be complicated.

At Erickson Construction, we’re here to guide you through the process, from early planning to final inspection, with a focus on clarity, accountability, and craftsmanship.

Ready to talk about your tenant improvement project? Let’s make the most of your space.