Tenant Improvement Projects
Tenant improvement work sits at an awkward intersection that most contractors don't handle well. The client signing the contract is the tenant – but the landlord owns the building, controls the base building systems, has to approve the plans, and is often paying part of the bill through a TI allowance. Three parties, three sets of interests, one construction schedule that has to align with all of them. When any one of those relationships breaks down, the project stalls.
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Tenant Improvement Service Overview
Most tenant improvement projects fail one of three tests: the TI allowance wasn’t structured against the actual scope of work, the landlord coordination wasn’t managed as a real workstream, or the schedule didn’t account for the review layers that TI projects have to pass through.
TI allowance structuring is the biggest one. A tenant negotiates a lease with a $45/SF allowance, walks into design, and specifies a scope that costs $75/SF. The delta comes out of the tenant’s pocket – which is fine if it was a conscious decision, but usually it wasn’t. The scope grew during design without anyone tracking it against the allowance envelope. By the time the contract estimate lands, the tenant is looking at a $200,000 out-of-pocket cost that wasn’t in the business case for the lease. We track scope against allowance throughout design, not at contract signing.
Landlord coordination is the second failure. The lease work letter defines what the landlord will do, what the tenant will do, and what’s shared. Reading that document carefully before design starts prevents scope confusion later. Base building HVAC tie-ins, sprinkler modifications, fire alarm integration, electrical distribution from the base building panel – all of these have a landlord-versus-tenant boundary that has to be understood before scope gets priced. Getting it wrong means work gets done that wasn’t reimbursable, or work doesn’t get done that the landlord expected the tenant to handle.
Review layer scheduling is the third. TI projects go through more approval layers than most tenants realize – landlord plan review, permit review, sometimes an architect of record review on behalf of the building. Each layer has its own timeline. Sequential review can eat six to ten weeks that a naive schedule doesn’t account for. Parallel review workflows exist when the relationships are managed properly. That’s a project management skill, not a construction one.
Tenant Improvement Cost – What Determines the Price
Tenant improvement costs vary with scope tier and existing conditions more than raw square footage. A light TI project in second-generation space with existing walls and utilities largely reusable runs $25 to $60 per square foot. A moderate TI with reconfigured walls, updated MEP, and mid-tier finishes runs $75 to $160 per square foot. A first-generation TI in shell space – new walls, ceilings, flooring, full MEP distribution, complete finish package – runs $180 to $450 per square foot depending on use category. Medical, restaurant, and laboratory fit-outs sit at the higher end because of specialized systems and inspection requirements.
The cost conversation on a TI project has to include the allowance structure. A $120/SF scope against a $60/SF allowance means $60/SF of tenant capital exposure – which changes the business case for the lease itself. That math should happen before design gets too far along. Contractors who don’t have this conversation with tenants are doing them a disservice, even when the contractor’s incentive is to bill the larger scope.
We estimate in phases with allowance tracking built into the reporting. Feasibility estimate against the lease terms and program requirements. Design-development estimate with allowance utilization shown as a separate line. Contract estimate after permit-ready documents. Tenant sees allowance draw against scope throughout the project rather than at closeout when reallocation isn’t possible anymore.
Our Tenant Improvement Services
From full replacements to targeted repairs, we provide comprehensive exterior solutions for homeowners across the Greater Seattle area.
Second-Generation Office TI
Buildouts in space that had a prior tenant – existing walls, ceilings, and utilities that can potentially be reused or modified. The assessment work matters here because reusing existing infrastructure saves real money, but only when the existing infrastructure actually fits the new program. We walk the space with the new floor plan in hand and identify what can be kept, what needs modification, and what has to come out and be rebuilt. Not everything from a prior tenant is worth keeping.
First-Generation Shell Buildouts
Full buildouts in shell space with no prior tenant improvements – bare concrete floors, exposed structure, base building utilities stubbed to a demarcation point. Larger scope, longer timeline, and more coordination with the landlord's base building work. First-generation buildouts often overlap with base building completion, which means construction sequencing has to account for landlord work that isn't finished when the tenant scope starts. We coordinate with the base building general contractor when the timelines overlap.
Specialized-Use TI: Medical, Restaurant, Retail, and Laboratory
Tenant improvement work for use categories with specialized inspection and equipment requirements. Medical fit-outs involve health department review, plumbing configurations for medical gas or specialty fixtures, and layout requirements tied to insurance certification. Restaurant fit-outs involve health department, hood ventilation, grease management, and equipment coordination. Retail fit-outs involve landlord design review boards and center-standard requirements. Laboratory fit-outs involve specialized MEP and safety systems. These aren't scopes that a generalist contractor should be figuring out for the first time on your project.
Rainwood also offers interior renovations. Contact us to discuss your project.
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COMMON PROBLEMS WE FIX
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Why Hire a Tenant Improvement Contractor
The difference between a general commercial contractor and a TI-focused contractor shows up in the first thirty days of the project – the pre-construction phase where TI allowance strategy, landlord coordination, and review sequencing get worked out.
Allowance management is the first place experience matters. A TI contractor should be helping the tenant understand what the allowance can and can’t cover, tracking scope against allowance throughout design, and flagging when a scope decision is about to push the project into out-of-pocket territory. This is advisory work, not construction work – and it saves the tenant real money when it’s done well.
Landlord relationships are the second place. Buildings have institutional memory about which contractors are easy to work with and which aren’t. A contractor who’s worked in a building before knows the base building systems, the construction manager’s preferences, the freight elevator rules, and the after-hours access protocols. That familiarity translates into faster approvals and fewer surprises. When we haven’t worked in your specific building before, we do the diligence upfront rather than learning on your project.
One project manager from the feasibility conversation through the closeout package – someone who knows your lease terms, your allowance structure, your program requirements, and your opening date, and can make decisions in the moment without escalating back to someone who wasn’t in the original conversation.
- One contract, one point of contact – no split responsibilities
- Line-item estimates, not lump sums with buried allowances
- Weekly updates with photos and documentation, not vague phone calls
- Scope changes priced and approved in writing before work happens
- Warranty paperwork and inspection records at project close
10+
Years Experience
Our Recent Projects
Browse through some of our recent siding installations and repairs across the Greater Seattle area.
Great people. Showed up early and stayed late to get the job done. Work was excellent. Price was the best i found after four quotes. Would definitely use this company again.
We hired Rainwood Construction LLC to replace our French doors, and the result was outstanding. We knew going in this was more involved than a standard swap — we switched from inward to outward swinging doors, requiring extra attention to framing, flashing, and weatherproofing to keep everything sealed against water intrusion.Anatoliy was our point of contact and led the project from before to after, making sure the swing change and weatherproofing were planned and executed correctly. Igor and Vitaly handled the on-site installation and did excellent, high-quality work. The whole team was on time, professional, and delivered top-notch results. Can’t recommend them highly enough. 5 stars!
Every member of this crew I've had the pleasure of coming in contact with has been professional, excellent in their skillset, and fast. Pricing was reasonable for the excellent job they did.Last year we hired Rainwood to do plumbing and painting for a job. Both crews did such a great job, were thorough, and the level of detail was fantastic!We liked them so much we recently hired them for a quick job (installing ceiling fans). We messaged on a Wednesday and the job was done by Friday.Will absolutely hire Rainwood again and again for every job we do for our home.
Working with Rainwood Constructions on our house remodel was an excellent experience from start to finish. Their contractors were highly professional, skilled, and attentive to detail, and the quality of their work exceeded our expectations. The team communicated clearly throughout the project and ensured everything was completed on time without compromising quality. We’re extremely happy with the results and would highly recommend them to anyone planning a home remodel.
We had a very good experience with Rainwood Construction LLC and Toli during my brother’s home construction project in Shoreline. The team was professional, communicative, and paid close attention to detail throughout the process. We were especially happy with the quality of the fittings and finishing work, which turned out really well. The project was handled smoothly, and the overall workmanship met our expectations. Would definitely recommend them to others looking for reliable construction services.
We had an excellent experience with them on our sunroom project. The quality of the work was outstanding, they were easy to work with, and they clearly explained each step, the schedule, and key decisions (with various options to help us understand cost) along the way. Communication was solid from start to finish, and the final result looks great. Highly recommend, they are my new go to recommendation when friends ask.
Our Process
From first contact to final walkthrough, we make siding projects straightforward and stress-free.
Lease and Work Letter Review
Before design gets far along, we read the lease work letter and the TI allowance terms. Landlord versus tenant scope boundaries identified. Allowance drawdown mechanics understood – what documentation the landlord requires, what timeline the tenant has to spend against the allowance, what happens to unused allowance dollars. This review saves scope confusion later and it's rarely done by contractors before contract signing.
Feasibility Walk-Through With Existing-Condition Assessment
We walk the space with your program requirements. Existing conditions verified – ceiling accessibility, base building HVAC delivery capacity, electrical panel schedules, plumbing stub locations, sprinkler head layout, structured cabling infrastructure. Second-generation space gets a reuse assessment identifying what can be kept versus what has to come out.
Permit-Ready Documents and Contract Estimate
Drawings developed to the level required for permit submission. Contract estimate with allowance utilization clearly broken out. Existing-condition contingency shown as a separate line item so the tenant sees what's base scope and what's contingency.
Closeout With Allowance Reconciliation
Final inspections coordinated. Punch list completed before occupancy. Closeout documentation delivered – as-builts, warranty information, equipment manuals, permit sign-offs. Allowance reconciliation package prepared for landlord submission so the tenant's reimbursement doesn't get delayed by missing documentation. This is where TI projects often lose money that was rightfully theirs – because the closeout documentation wasn't organized the way the landlord's accounting requires.
Ready to Get Started?
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425-750-1025
Email us
Anatoliy@rainwoodconstruction.com
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12310 Hwy 99, Everett, WA 98204
Hours
Mon-Fri 9:00 am–6:00 pm, Sat 11:00 am–5:00 pm, Sun Closed
FAQ
A light TI in second-generation space runs $25 to $60 per square foot. A moderate TI with reconfigured walls, updated MEP, and mid-tier finishes runs $75 to $160 per square foot. First-generation shell buildouts run $180 to $450 per square foot depending on use category. Medical, restaurant, and laboratory fit-outs sit at the higher end because of specialized systems. The per-square-foot number depends more on the scope of MEP work and specialty systems than on total area, which is why we itemize by system rather than quoting a blended rate.
The TI allowance is landlord money committed to the tenant improvement scope as part of the lease negotiation. Structure varies by lease – sometimes it’s a fixed dollar amount, sometimes a per-square-foot amount, sometimes tied to specific scope categories. Drawdown mechanics vary too – some landlords pay directly to the contractor against invoices, some reimburse the tenant after the tenant pays, some hold back a percentage until closeout. Understanding your specific allowance structure before design starts is essential. We review the work letter with the tenant at the start of the project to make sure the drawdown mechanics are clear.
Depends on the lease. Some allowances explicitly permit soft-cost draws for design fees, permit fees, and project management. Others restrict the allowance to hard construction costs only. Some allow soft costs up to a percentage of the total. This is negotiated in the lease and defined in the work letter. If it’s important to you to draw design fees against the allowance, that has to be established in the lease terms before construction – trying to negotiate it after the fact is difficult.
A light TI in second-generation space with reused infrastructure runs six to ten weeks. A moderate TI with permit-required work runs three to five months from contract to occupancy – roughly half of that is pre-construction, design, and review. First-generation shell buildouts run five to nine months. Specialized fit-outs like medical and restaurant often run longer because of additional inspection requirements. The pacing items are usually landlord review and permit review, not construction itself.
Depends on the lease. Some allowances are use-it-or-lose-it – unused dollars revert to the landlord. Some can be applied to rent abatement, converting unused construction dollars into free rent for a period. Some can be drawn for other tenant costs like moving expenses or IT infrastructure. This should be negotiated in the lease and documented in the work letter. If your lease has favorable unused-allowance provisions and you’re going to come in under budget, we help you structure the closeout to preserve the flexibility.
For most TI scopes, yes. Any work involving structural modifications, MEP changes, egress path changes, or occupancy classification changes requires sealed drawings from a licensed design professional. Landlords often require sealed drawings even when the jurisdiction doesn’t. We work with architects who specialize in commercial TI work, or with your existing design team. Bringing the architect into the work-letter review conversation at the start prevents design decisions that don’t align with the landlord’s boundaries.