Los Angeles Office Space - Who Pays For Tenant Improvements?
Here’s what you can expect:
Retail Space
Most retail spaces are delivered in “as is” condition, meaning that the electrical and plumbing both work and the space is ready for business. It can be difficult to negotiate much of a contribution from the owner/landlord to complete your improvements that are needed for your business. If the improvements would be needed for any tenant, like an ADA bathroom, then make sure to ask for them up front as costs can increase quickly. However, in these current economic times, tenants may have more leverage when negotiating the TI’s.
Industrial Space
Make sure the roof doesn’t leak and your power needs are provided for with the current infrastructure. If the current infrastructure is not adequate, ask for the desired improvements in the first offer. Once those major issues are out of the way, improvements usually occur in the office area or for a restroom installation.
Office Space
For most small businesses, the biggest issue with a space is the necessary term of the lease. If you want to do a month- to-month or one-year lease, the landlord will rarely provide much in the form of improvements. If you are signing a lease for two or more years, there are opportunities to ask for new paint and carpet, or the reconfiguring of the existing office layout.
You’re right… the length of term is a huge factor in creating leverage to have a Landlord contribute their own money to a tenants space… it’s tough times with this economy and the uncertainty. Everyone wants a fully built suite and a one year term… can you say disconnect?
Chris Fyvie
8 May 09 at 7:19 am
Tenant improvements are all a part of the negotiations of your lease. In today’s market landlord’s are a lot more plyable. Having a broker may assist you in getting what you want, but dobn’t be afraid to ask for a tenant improvement allowance when negotiating your rate and length of your lease.
Los Angeles office space
31 May 09 at 11:27 am