What Is Your Commercial Build-Out Scope?

Commercial build-out costs vary substantially by space type and finish level. Office build-outs commonly run $60-200 per square foot; retail $80-300 per square foot; restaurant $200-500+ per square foot due to kitchen and MEP intensity; medical $200-500+ per square foot due to specialized requirements; warehouse and industrial $15-75 per square foot for lighter fit-out. Cold-shell complete build-outs typically command higher per-square-foot pricing.

Tenant improvement (TI) generally refers to modifications within an existing leased space for a new or existing tenant, including layout reconfiguration, MEP adjustments, and finishes. Full build-out commonly refers to constructing from a cold shell with no existing walls, MEP, or finishes. TI scope ranges from cosmetic refresh to comprehensive reconfiguration; full build-out is the heaviest commercial scope category.

Commercial build-out timelines vary by scope: cosmetic refresh 4-8 weeks; minor fit-out 6-12 weeks; standard office or retail build-out 12-20 weeks; restaurant or medical build-out 16-32 weeks; full cold-shell build-out 6+ months. Permitting and design typically add weeks to months ahead of construction; landlord coordination on TI projects can add additional time.

Commercial leases typically include a tenant improvement allowance (TIA) where the landlord contributes a per-square-foot amount toward the build-out, with the tenant covering costs beyond the allowance. TIA amounts vary by market, lease length, and tenant credit (longer leases and stronger tenants typically command higher TIA). For build-outs exceeding TIA, tenants commonly amortize the difference into rent or pay out-of-pocket.

Brutal honesty on commercial build-out scope produces by far the most useful result. The assessment is structured so that a polished answer pattern lands on a generic recommendation, while honest answers land on something specifically applicable to your real commercial build-out scope situation. No one else sees the answers unless you choose to share the result, so there is no upside to softening them.

A general contractor manages construction execution after design is complete (or after an architect is engaged separately) and coordinates subcontractors, scheduling, and permitting.

AGC of America Project Delivery research consistently identifies five pre-construction foundations: all required permits and approvals (building, electrical, plumbing, mechanical, HOA if applicable), complete construction documents with finish selections made, fully secured financing with documented contingency reserve, contractor under contract with subcontractors and suppliers committed, and site prep complete with a documented project schedule.

Better Business Bureau and home-improvement consumer-protection research consistently identify five vetting practices: verify state contractor license through the state license board, request and verify certificates of insurance (general liability and workers compensation), check 3+ recent customer references with calls and ideally project visits, search complaints with state attorney general and BBB, and require a written contract with payment schedule, scope, and change-order procedures.

Industry guidance from NAHB and custom-home community resources consistently identifies a tipping point when renovation cost approaches 60-70% of new-build cost for the same square footage on the same lot.

JBKnowledge ConTech Report and AGC industry research consistently identify four practices that lift contractor win rates: standardized estimating template or software, professional proposal presentation with clear scope and terms, fast turnaround within prospect-expected window, and disciplined bid follow-up at 48 hours and 7 days after submission.