A Guide to Tenant Improvements

At Titus Contracting, we are often asked to help with tenant improvements in Burnsville and the surrounding areas. But if you have never been through this process before, you might have a few questions about tenant improvements and what they are. Here is a brief rundown of what they are and what to expect.

Tenant Improvements Defined

If you are a business owner looking for new office space to lease, you have probably heard the phrase “tenant improvements” thrown around a lot. Tenant improvements are when the building owner makes improvements to the leased office or commercial use space so the building is configured to the needs of the tenant. The terms of these improvements vary. Sometimes, the tenant is responsible for all of the costs associated with the renovations. But more often than not, the building owner will provide a tenant improvement allowance to cover much of the cost with the tenant picking up the remainder.

A turnkey build-out is when the building owner pays for and takes care of all of the work. Then there are two other main variations of tenant improvements: “vanilla shell,” which is used to describe a building that has finished walls, ceiling and floors as well as lighting and heating and air conditioning, and “gray shell,” which is when the building does not have air conditioning, heat, finishes or light.


The easiest way to sort out who is responsible for tenant improvements is to have a meeting between the building owner and the tenant. The contract between them should be in writing and everything should be clearly laid out: who is paying for what, what improvements will be made, scheduling, a scope of work, etc.

Benefits of Tenant Improvements

Tenant improvements are usually a win-win for everyone. The tenant gets the space they want with all of the bells and whistles they want. The building owner gains a new tenant and a steady stream of income from the monthly rent the building owner is charging to the tenant.

As you can see, tenant improvements are a great way for a tenant to get a newer and better business space. And they are a great way for the building owner to make improvements to their building while making a new tenant happy at the same time.

Do you want more information about tenant improvements in Burnsville and the surrounding areas? Call Titus Contracting at 952-746-7817 or you can contact us and get a Free Estimate.

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