Tenant Improvement Construction Checklist for 2025

Tenant improvement (TI) projects are a vital part of the commercial real estate market, providing customized solutions for tenants while enhancing property value. Whether you’re a contractor, project manager, or commercial landlord, staying organized is key to a successful tenant improvement project.

To help ensure that your TI projects run smoothly, we’ve created a Tenant Improvement Construction Checklist for 2025. This guide highlights essential steps and best practices to follow, from initial planning to final inspection.

1. Understand Lease Agreement Terms

Before starting any project, review the tenant’s lease agreement. Many leases outline tenant improvement allowances, responsibilities, timelines, and expectations. Ensure that the project scope aligns with both tenant and landlord obligations.

If your tenant has a tenant improvement allowance, ensure that it is accounted for in your budget. This is especially important in commercial tenant improvement projects, where expenses can vary significantly based on the tenant’s requirements.

2. Consult with a Professional Team

Building a solid team is crucial for any successful TI project. Ensure you have the right mix of professionals, including:

• Designers/Architects: To create plans and layouts that meet tenant needs and comply with local codes.
• Contractors: Look for those who specialize in tenant improvement services and have experience working with commercial spaces.
• Project Managers: To keep everything on track, from budgeting to scheduling.
• Legal Advisors: To review compliance and lease terms.

3. Create a Detailed Project Plan

A comprehensive project plan should cover:

• Timeline: Clear start and finish dates, including milestones.
• Budget: An itemized list of materials, labor, permits, and any unforeseen costs.
• Scope of Work: Identify the improvements being made, such as electrical updates, partition walls, or HVAC adjustments.

Having a complete TI guide helps prevent project delays by providing clarity on what needs to be done and when.

🔗 Learn more about the complete TI guide

4. Choose the Right Contractors

Choosing the right contractor can make or break your project. For tenant improvements, you need contractors who are not only skilled in construction but also knowledgeable about tenant-specific needs and regulations.

If your project involves extensive renovations, consider hiring apartment renovation contractors with experience in both residential and commercial spaces. They’ll ensure that work aligns with local codes and tenant expectations while maintaining quality standards.

5. Ensure Compliance with Local Codes

Ensure that all improvements comply with local building codes, ADA regulations, and any applicable environmental or safety standards. This is especially important when making structural changes or updating plumbing and electrical systems.

Failure to comply can lead to costly delays, fines, and rework, so it’s essential to work with professionals who understand the latest regulations.

6. Plan for Tenant Business Continuity

When managing a tenant improvement (TI) project, especially in commercial spaces, it’s critical to ensure that the tenant’s business operations are not disrupted. For many businesses, the ability to operate smoothly during renovations is not just a convenience, it’s often a necessity for maintaining revenue and customer satisfaction. The key is early and open communication with the tenant to address any concerns they may have about how construction might impact their daily operations. A well-executed business continuity plan will help mitigate the disruption caused by construction, keeping the tenant’s business running as smoothly as possible.

a) Construction Schedules that Accommodate Tenant Operations

To minimize disruptions, construction schedules should be crafted with input from the tenant. Find out the tenant’s hours of operation and adjust the construction timeline to work around those hours. For example, if the tenant’s business operates during standard working hours, it may be best to schedule heavy construction work during off-hours or weekends. This reduces the impact on the tenant’s employees and customers.

If the business operates 24/7, such as in a restaurant, convenience store, or medical office, you’ll need to explore options for phased construction. A phased approach allows work to be done in stages, limiting construction activity to one part of the building at a time, which prevents the entire space from being inaccessible.

It’s also essential to communicate any potential downtime well in advance. This gives the tenant time to adjust their operations, plan for alternative arrangements, and inform customers. Clear and proactive scheduling ensures the tenant isn’t blindsided by unexpected closures or disruptions and helps maintain a good relationship throughout the construction process.

b) Noise Management Procedures to Limit Disturbances

Construction noise is one of the most common complaints from tenants, and for good reason—it can severely impact business productivity, especially in office environments or medical practices that require quiet or concentration. Noise management should be a top priority in any tenant improvement project.

One way to handle this is by scheduling noisy work during times when the tenant’s business is least affected. If possible, complete demolition, drilling, or other noisy activities during hours when the business is closed or less busy. If this isn’t feasible, provide tenants with a detailed timeline of noisy activities so they can prepare or adjust their operations accordingly.

Additionally, noise can be minimized by using modern equipment and tools designed to reduce sound, such as quieter saws or drills, or sound barriers (like temporary walls) to contain the noise within the work area. If noise continues to be a concern, offer tenants temporary solutions, such as providing noise-canceling headphones or allowing them to temporarily relocate to a quieter area of the building during construction hours.

c) Temporary Utilities to Keep the Tenant Functioning

In many commercial spaces, construction projects may require interruptions to basic utilities, such as water, electricity, or HVAC systems. These interruptions can be particularly detrimental to businesses that rely on utilities to function, such as retail stores, restaurants, or medical offices.

Whenever possible, plan for temporary utility provisions to maintain operations. For example, if construction requires shutting off the water supply, ensure that the tenant has access to portable water solutions, or arrange for temporary plumbing fixtures that allow the business to continue to operate.

Similarly, if the electricity needs to be turned off, make arrangements to provide temporary power solutions. This might include generators for critical equipment or temporary lighting to ensure the business remains operational. If HVAC systems are impacted, temporary air conditioning or heating should be provided to maintain a comfortable environment for both employees and customers.

Effective planning for these temporary utilities can go a long way toward preserving the tenant’s ability to operate their business with minimal disruptions.

7. Prepare for Final Inspections and Punch List

Once the construction phase of a tenant improvement project is completed, the next critical step is to ensure that everything is up to code and ready for occupancy. This phase typically involves final inspections and a punch list—a comprehensive list of minor adjustments or fixes that need to be completed before the space is officially handed over to the tenant.

a) Scheduling and Coordinating Final Inspections

Final inspections are necessary to ensure that the renovations and improvements made during the construction process meet local building codes, safety standards, and the terms outlined in the lease agreement. Scheduling the inspections with the appropriate local authorities or third-party inspectors is essential to avoid delays in the process.

As part of the inspection process, inspectors will assess structural components, electrical systems, plumbing, and fire safety equipment to ensure they comply with current building codes. If the building has undergone significant changes—such as installing new walls, HVAC systems, or electrical circuits—these elements must meet specific requirements set by municipal regulations.

For tenant improvement services, it’s particularly important that the space is evaluated to ensure the improvements were executed according to the tenant’s needs and any special considerations in the lease agreement. These might include ADA compliance, tenant-specific design features, or security upgrades. Proper inspections help ensure everything works as expected and can prevent costly rework later.

b) Creating and Addressing the Punch List

Once inspections are completed, the punch list comes into play. The punch list includes minor repairs, touch-ups, and adjustments that may not have been caught during the main construction process. This list can include tasks such as fixing minor cosmetic issues (e.g., wall painting touch-ups, cleaning), ensuring all electrical outlets are functioning, or checking that all fixtures are properly installed.

For both the tenant and the landlord, this is the final opportunity to ensure everything is perfect before the space is occupied. Both parties should walk through the space together, identifying any discrepancies from the agreed-upon terms and noting all outstanding tasks. This step also ensures that all aspects of the tenant’s unique needs have been fulfilled.

For example, if the tenant required certain lighting adjustments, HVAC placement, or specific layout configurations, these should be confirmed and finalized at this stage.

Once the punch list is addressed, and all tasks are completed to satisfaction, it’s time to hand the space over to the tenant. A thorough final inspection and punch list process ensure that the space is ready for occupancy and that the tenant is happy with the improvements made.

Conclusion

A tenant improvement construction checklist helps streamline the process, reduce errors, and ensure that everything is in order for both the landlord and tenant. Following these steps will set your project up for success in 2025 and beyond.

For more detailed insights and expert tips on managing tenant improvement projects, refer to our complete TI guide. Whether you’re overseeing a large commercial build-out or a smaller retail renovation, staying organized and informed is key to delivering quality results.