- A useful TI budget separates the tenant scope, landlord work, owner purchases, agency costs and unresolved building conditions.
- Finish-led office work and infrastructure-heavy restaurant, medical or service spaces should not be compared with one universal square-foot number.
- In Los Angeles, permit and plan-check strategy follows the actual scope and use. A landlord approval does not replace city review.
What a commercial tenant improvement budget should cover
A tenant improvement estimate should describe the area being improved and the construction needed to make it usable for the proposed business. Typical categories include protection and demolition, partitions, doors and glazing, ceilings, millwork, flooring, paint, electrical, lighting, plumbing, HVAC, fire-life-safety coordination, accessibility work, permits, inspections and closeout. Not every project needs every category, but exclusions should be visible.
Start by separating tenant work from base-building or landlord work. Confirm who provides utility capacity, rooftop equipment, fire-sprinkler modifications, electrical panels, restroom upgrades, storefront work and after-hours access. A lease allowance or landlord contribution is a funding term; it does not by itself define who designs, permits or installs the work.
A realistic early planning range for Los Angeles
For preliminary screening, Archéform's website estimator uses about $80 to $250 per square foot of improved tenant area. A finish-led office refresh with limited layout and system changes may fall toward the lower part of that range. A coordinated office or retail build-out with partitions, ceilings, lighting, HVAC distribution and multiple finishes can move through the middle. Restaurant, medical, salon and infrastructure-heavy service spaces can exceed the upper end because equipment, ventilation, plumbing, power, fire-life-safety and specialty approvals add work.
This range is an early planning tool, not a bid or a promise. Small suites can cost more per square foot because permits, mobilization, temporary protection and trade minimums are spread over less area. Large open spaces may have a lower unit cost but a much larger total. A site walk, plans, finish decisions and building information are needed before a contractor-supplied proposal can be confirmed.
- Lower-cost conditions: usable existing layout, sound finishes, adequate utilities, limited demolition and standard products.
- Mid-range conditions: new partitions and doors, ceiling work, coordinated lighting and power, HVAC distribution, millwork and complete finish replacement.
- Higher-cost conditions: change of use, food service, medical or salon utilities, grease or exhaust systems, service upgrades, structural work, major accessibility corrections or extensive landlord requirements.
The cost drivers that matter more than square footage
Ask each bidder to state the same quantities, product assumptions, connection responsibilities and finish boundaries. A low number that leaves electrical capacity, HVAC balancing, fire-sprinkler work, landlord protection or permit corrections unresolved is not yet comparable with a complete scope.
- Existing conditions: previous unpermitted work, damaged assemblies, uneven floors, limited ceiling space and undocumented utilities.
- Use and occupancy: office, retail, restaurant, medical and personal-service spaces have different equipment and code demands.
- MEP capacity: available electrical service, plumbing locations, HVAC capacity, controls, ventilation and fire-sprinkler coverage.
- Accessibility: the path of travel, entries, counters, clearances, restroom conditions and other project-triggered requirements.
- Building operations: loading, elevators, parking, protection, noise hours, union or approved-vendor rules and occupied-neighbor coordination.
- Products and lead times: storefront, glazing, doors, millwork, lighting, flooring, equipment and owner-furnished items.
- Schedule: phased work, night work, expedited decisions and a fixed opening date can change staffing and sequencing.
Los Angeles permit and plan-check planning
LADBS lists Information Bulletin P/GI 2026-006, effective January 1, 2026, for document submittal requirements for tenant improvements, additions or alterations to existing commercial and industrial buildings. The bulletin is described as suggested minimum documentation; the project may require fewer or additional items depending on its scope.
LADBS also identifies different plan-check routes, including counter and regular plan check, and its Counter Plan Check page specifically includes some tenant improvements involving a change in use with no change in parking. Eligibility still depends on the project presented to the department. Do not promise a review path from square footage or construction cost alone.
Building, electrical, plumbing, mechanical, fire and other agency reviews may be separate. The architect or responsible design professional should identify the proposed use, code analysis, accessibility approach and drawing requirements. The contractor should price and schedule the approved scope, required trade work and inspections. Landlord or property-management approval remains a separate requirement.
How to keep the TI budget controlled
Begin with a written responsibility matrix. Mark each item tenant-contractor, landlord, owner-purchased, separate vendor or undecided. Confirm building standards for doors, ceiling systems, lighting controls, HVAC controls, flooring protection and fire-life-safety vendors before design is released for pricing.
Keep suitable walls, ceilings and utilities when the planned use allows it. Use standard product sizes and a controlled finish palette. Price optional conference rooms, feature walls, custom millwork or decorative lighting as alternates when they can be deferred without repeating core work. Do not postpone required accessibility, fire-life-safety, ventilation or inspection work merely to reach a target number.
Release long-lead materials only after dimensions, approvals and responsibility are clear. Track plan revisions and owner selections with dates. If field conditions differ from the plans, document the condition and approve the scope, price and schedule effect before additional work proceeds.
What affects the construction schedule
The calendar includes more than active construction days. Lease review, site verification, design, landlord approval, plan check, corrections, product procurement, construction, inspections and closeout are separate stages. A target opening date should be tested against all of them.
Before promising a start date, confirm possession of the suite, utility access, building work rules, approved plans, permit readiness, long-lead materials and any landlord-provided work. During construction, inspection availability, design responses, concealed conditions and owner decisions can change the critical path. A useful proposal states these assumptions instead of offering a generic completion promise.
Send plans and site information for an estimate review
Planning a commercial tenant improvement in Los Angeles, Hollywood, West Hollywood, Glendale or Orange County? Send the location, proposed use, suite size, photos and available plans through Request an Estimate. Young Choi can review the scope, identify missing pricing information and explain whether a site visit or plan-based proposal is the practical next step. Final pricing depends on the property, approved documents, products and responsibilities.
- Current architectural set and its status: concept, landlord review, plan check, approved or permitted.
- Suite address, approximate improved area, previous use, proposed use and desired opening date.
- Wide photos of every room plus electrical panels, ceilings, restrooms, mechanical equipment and utility connections.
- Lease work letter, landlord construction rules, insurance requirements and approved-vendor list when available.
- Finish schedule, equipment list, owner-purchased items and the working construction budget.
Planning ranges are general starting points, not a bid or guarantee. A written proposal requires review of the property, final scope, selected materials, access, jurisdiction and applicable approvals.