Did you know: More than 70% of commercial tenant improvement projects face delays due to overlooked long-lead items or unclear scheduling? Understanding a tenant improvement schedule isn’t just helpful—it’s critical for avoiding costly surprises.
What To Learn About the Tenant Improvement Schedule
- A clear definition of a tenant improvement schedule and why it matters for your tenancy, lease, and business plan.
- How to break down the step-by-step improvement process to achieve a successful tenant improvement project.
- Common long-lead items, red flags, and what can derail your improvement project.
- Key questions to ask your GC/PM/landlord, and how to navigate the local realities of commercial real estate.
Definition and Core Concepts
What is a Tenant Improvement Schedule?
A tenant improvement schedule is the master project timeline that charts every step in transforming an existing space to meet your specific business requirements. This schedule outlines the entire improvement process—from initial design and permitting to final move-in—and details all milestones, deadlines, and responsibilities for a tenant improvement project. Typical components include the project start date, key milestones (like finalizing plans, submitting building permits, and physical construction), and critical path items such as long-lead materials. This schedule forms the backbone of a successful tenant improvement by coordinating general contractors, property managers, and tenants, making sure everyone is working toward the same goal. Without a clear tenant improvement schedule, even the best improvement project can stall due to unanticipated hiccups.
In real estate, particularly in commercial space, the tenant improvement schedule is not just an organizational tool; it’s a risk management asset. By defining a structured timeline, establishing check-ins, and listing all long-lead items, you prevent headaches like extra rent payments, missed business openings, or costly scope of work changes. This is especially true in urban markets where local building requirements, permitting delays, or after-hours access can derail the best-laid plans. The tenant improvement schedule is where timelines, budgets, leases, and real-world build logistics converge—making it the single most important document for a successful tenant improvement project.
- Quick definition and typical components—how it fits into the improvement process and tenant improvement project lifecycle.
Why Does the Tenant Improvement Schedule Matter?
Your tenant improvement schedule directly shapes your project’s success and your total cost of occupancy. The schedule guides every detail: it allocates your improvement allowance (the funds set aside in your lease agreement for making the space your own), impacts rent-free periods, and even dictates when your rent kicks in. If the schedule is underestimated or vague, you could see cost overruns, delays that consume your improvement allowance, or worse—missed lease commencement dates that hit your finances hard. That’s why an accurate schedule is essential for controlling expenses, protecting your budget, and delivering a successful tenant improvement experience.
For tenants, property managers, and brokers in commercial real estate, understanding how schedule, improvement allowance, and lease terms interact is non-negotiable. Tight timelines and busy metro areas create stress points. If a long-lead item (like custom HVAC units or specialty lighting) is missed, it can bottleneck your entire schedule, impacting the project timeline and potentially triggering penalties in your lease agreement. Getting clear on your tenant improvement schedule, and building in a “no surprises” buffer, is one of the best ways to ensure your tenant improvements support your long-term business goals.
- Impact on tenant improvements, budgeting your improvement allowance, and ensuring a successful tenant improvement experience.
Key Elements of a Tenant Improvement Schedule
Milestones in the Tenant Improvement Process
A tenant improvement schedule is built around major milestones that move your project from “dream” to “move-in-ready.” Key phases typically include space planning, architectural design, permitting, construction buildout, inspections, and, finally, transition to occupancy. Space planning sets the design vision, while detailed design decisions must account for building code and real estate regulations. Next, building permit submission and approval can involve weeks, especially in urban settings with large project volumes. The construction phase turns documents into reality—framing, electrical, plumbing, finishes—while inspections confirm work meets local codes and your expectations.
Each milestone in the timeline is a checkpoint that helps keep your tenant improvement project on course. Delays at any stage can ripple through the schedule, impacting the move-in date and your lease term. That’s why proactive communication, defined roles, and a realistic milestone calendar are crucial. For example, in busy districts like DTLA, scheduling city inspections or access to freight elevators for materials delivery can add weeks to your project if not properly coordinated in the improvement process.
- Major phases (space planning, design, permitting, buildout, inspections, move-in) in improvement project management.
Long-Lead Items and How They Impact Your Tenant Improvement Project
Long-lead items are materials or equipment with extended order or fabrication times, such as specialty lighting, high-efficiency HVAC units, custom doors, or imported finishes. These are notorious for derailing an otherwise well-planned tenant improvement process. If not identified and ordered early, long-lead items can burn through your improvement allowance due to rush shipping fees or trigger schedule overruns that affect your lease start date. For example, waiting on custom millwork or imported tiles may pause other trades, causing a domino effect on the entire project timeline.
In commercial real estate, especially in metro areas, procurement lead times can be unpredictable due to market supply chain fluctuations or unique building requirements. Overlooking one long-lead item can push your move-in back, force temporary fixes, or even lead to failed inspections if required features aren’t installed on time. Working with your general contractor and property manager at project kickoff to identify, prioritize, and order these items as soon as possible is a cornerstone of no-surprises scheduling.
- What constitutes a long-lead item, how delays ripple through your tenant improvement allowance and lease term.
| Phase | Typical Duration | Long-Lead Items | Common Delays |
|---|---|---|---|
| Space Planning & Design | 2-4 weeks | Design approvals, specialty materials | Late design input, scope changes |
| Permitting | 3-8 weeks | Custom plans, city review | Backlog at local building office |
| Construction Buildout | 6-14 weeks | HVAC, electrical gear, fixtures | Late delivery, code issues |
| Inspections | 1-2 weeks | None (but work must be complete) | Failed inspections, rework required |
| Move-In & Punch List | 1 week | Punch list repairs, final clean | Last-minute fixes, cleaning delays |
‘No Surprises’ Planning: Step-by-Step Guide to Building Your Tenant Improvement Schedule
Step 1: Confirm Tenant Improvement Allowance and Lease Agreement Terms
Before you break ground on your tenant improvement project, scrutinize your lease agreement for all details related to your tenant improvement allowance—how much money is available, what counts as a qualified improvement, and when funds are disbursed. Different lease terms may tie your improvement schedule directly to rent commencement or give you a window for “free rent” prior to move-in. It’s critical to align your schedule with your business plan, lease term, and adequate funding, so you’re not left holding the bag for overages. Engaging your broker, attorney, and property manager early ensures that your budget and timeline match local reality, protecting you from unpleasant surprises down the road.
Don’t hesitate to ask for a written summary of your improvement allowance and any requirements for reimbursement or cost tracking. Make this step the foundation of “no-surprises” planning—set practical deadlines, know your lease terms, and keep everything in writing. In high-demand markets like DTLA, even well-negotiated improvement allowances can evaporate quickly if the schedule slips, so have your team confirm what’s required for a successful tenant improvement.
- Clarify your lease terms, review improvement allowance, and set realistic schedules aligned with commercial real estate realities.
Step 2: Collaborate with Your GC, Property Manager, and Broker
Every successful tenant improvement requires a strong, aligned project team—your general contractor (GC), property manager, and commercial broker should all be clear on the schedule, improvement allowance, and roles. Best practice: hold a kickoff meeting where expectations, communication protocols, and a draft tenant improvement schedule are shared. Identifying key decision points and who has authority (tenant, landlord, or GC) keeps the process nimble and reduces costly back-and-forth. Document all communications and schedule check-ins to catch red flags early.
In commercial real estate, weak communication is the main cause of missed milestones, delayed permits, and surprise change orders. Whether you’re dealing with complex property owner rules, local building officials, or multiple project phases, consider circulating weekly updates and using collaborative project-management tools. This keeps your improvement process transparent and everyone accountable for hitting your project timeline.
- Best practices for communication, setting expectations, and assembling the right improvement project team.
Step 3: Map Out Permitting and Inspections for Your Tenant Improvement Project
Every commercial real estate market has its quirks—especially when it comes to building codes, local building reviews, and city inspections. Permitting can tank a tenant improvement schedule if you’re not prepared. Learn the specific approval process for your building and city; submit permit documents that reference applicable building code sections, and understand approval timelines in your area. In downtown markets, plan for backlogs—major metro offices can take weeks or months to approve a building permit. Account for multiple inspection phases, and factor them into your project timeline.
Talk to your GC and property manager about who’s responsible for permit submission and follow-up. Missed or delayed permits are among the top causes of project slowdowns, so add extra time to your schedule just in case. Always confirm if your project needs sign-off by fire, elevator, or health inspectors—each can impact your move-in date and lease term.
- Building codes, local building permit requirements, approval timelines for commercial real estate in metro areas (e.g., DTLA).
Step 4: Identify Long-Lead Items Early in the Tenant Improvement Process
Proactive ordering of long-lead materials—like specialty doors, elevators, dedicated electrical gear, or imported finishes—is a lifesaver for your tenant improvement schedule. As soon as your improvement plans are finalized, request that your general contractor or project manager provide a list of items with long procurement times and confirm estimated delivery windows. Many successful tenant improvement projects use “early release” or advanced order strategies to secure critical items before demolition even begins.
Develop the habit of reviewing product submittals, shop drawings, and delivery commitments with your GC weekly. Doing so helps you spot potential bottlenecks and allows for timely substitutions if a supplier falters. Remember, in commercial real estate, a single missed long-lead item can keep your team off-site for weeks and lead to costly re-sequencing or overtime charges, all of which eat away at your improvement allowance.
- Examples of long-lead materials, fixtures, equipment; how to request early release/orders.
Step 5: Account for Metro & Building-Specific Logistics
Urban commercial real estate projects—especially in dense metros like DTLA—present unique logistical challenges for your tenant improvement schedule. Building access is highly regulated: after-hours work, elevator scheduling, loading dock reservations, and city-imposed noise ordinances can create delays. Always check with the property manager and GC about project rules, special requirements for moving materials, or restrictions during holidays or rush hours.
Details like scheduling city inspections, arranging for debris removal, or navigating basement-level utility spaces can add unexpected days or weeks to your improvement process. Build extra time into your schedule for coordination with the building’s operational staff, security procedures, or parking permits. Being proactive about these building-specific realities protects your move-in date and helps keep your improvement allowance from being wasted on last-minute overtime or change orders.
- After-hours access, elevator scheduling, city inspections, and how urban commercial real estate details impact your improvement schedule.
Step 6: Set Check-In Points and Adjustments for a Successful Tenant Improvement
No tenant improvement schedule is perfect from day one—project realities mean adjustments are part of the process. That’s why scheduling regular check-in points with your GC, broker, property manager, and even the property owner is essential. Use these times to review progress against the schedule, catch surprises before they escalate, and adapt as needed to keep your project within the improvement allowance and lease term.
Typical check-ins happen at major milestones: after demolition, during inspection sign-offs, and as you approach substantial completion and start your “punch list” walk-through. Document all agreed adjustments and communicate any changes in writing. This creates a shared record, helps resolve disputes, and supports a successful tenant improvement experience from start to finish.
- How to monitor job progress, adapt to changes, and keep the project within the improvement allowance and overall lease term.
Common Pitfalls in Tenant Improvement Schedules—And How to Avoid Them
- Missed milestone deadlines: Plan realistic timelines, require weekly updates, and address issues as soon as they arise.
- Poor communication between tenant, GC, and landlord: Establish regular meetings and document all changes to the schedule.
- Surprise building code violations or permit delays: Have plans reviewed by an expert before submitting for permits.
- Underestimating long-lead item delays: Confirm long-lead item lists and order early; build flexibility into the schedule.
- Inaccurate improvement allowance budgeting: Track spending closely and clarify reimbursement procedures up front.
- Overlooking lease agreement requirements: Review the lease for all TI clauses, deadlines, and move-in triggers.
“No two tenant improvement projects are ever the same, especially in complex urban markets. Meticulous planning and open communication are your best insurance.” – Senior Project Manager, DTLA
Questions to Ask Your GC/PM/Landlord Before Signing Off on Your Tenant Improvement Schedule
- What are the known long-lead items for my improvement project?
- Who is responsible for managing building permit submissions and deadlines?
- How is the improvement allowance disbursed throughout the tenant improvement process?
- What happens if delays extend past the scheduled move-in?
- Are there special after-hours rules or logistics for this commercial real estate building?
FAQ: Tenant Improvement Schedules
Are leasehold improvements 15 year or 39 year?
- The IRS generally allows depreciation of leasehold improvements over 15 years if certain requirements are met; otherwise, the default is often 39 years. Consult your CPA to determine your specific tenant improvement project’s eligibility.
What is a reasonable TI?
- A reasonable tenant improvement allowance varies by market, building class, and tenant needs. National averages range from $30-$80 per square foot, but local commercial real estate dynamics and lease terms have a significant impact.
What does TI mean in project management?
- “TI” in project management refers to tenant improvement, representing alterations to building interiors to suit the needs of incoming tenants. TI can refer to both the physical improvement process and the allocated improvement allowance in the lease agreement.
What is a TIA reimbursement?
- TIA stands for Tenant Improvement Allowance. TIA reimbursement refers to landlords paying tenants back (or paying directly) for qualified improvement project costs up to the agreed allowance, as defined in the lease agreement.
Pro Tips for a Successful Tenant Improvement Schedule
- Always confirm the improvement allowance and approved scope before work starts
- Have your improvement project plans reviewed for building code compliance
- Build in extra time for building permit reviews in busy metro markets
- Use checklists for each phase of the tenant improvement process
- Keep all communication in writing for your records
Understanding Your TI Schedule
- How does the tenant improvement schedule impact rent commencement and lease term? The schedule sets your timeline for project completion, which in turn determines when rent obligation starts according to your lease agreement. If the project is delayed, you may face carrying costs or negotiate extensions, depending on your landlord.
- Who owns the improvements after project completion? In most leases, tenant improvements become the property of the landlord upon installation, but exact terms vary. Review your lease or consult your broker to clarify ownership after project wrap-up.
- Can you extend a tenant improvement allowance or project deadline? Extensions are sometimes negotiable, but should be documented as a formal lease amendment. Involve your property manager and legal counsel if schedule changes are needed.
A tenant improvement schedule is critical to a successful tenant improvement project. Early planning, clear roles, and adapting to local requirements can help tenants avoid costly schedule overruns.