For outsiders or people who are new to the industry, there are several terms that can be perplexing. "Fit-out construction" is one of these terms. What is the definition of fit-out construction? It usually refers to the actions that prepare a commercial tenant's interior space for occupation. Fit-out work is frequently done by a tenant's own contractor rather than by the landlord's building company.
An interior space developed by a contractor working for a commercial space landlord is commonly referred to as a "white box" or "shell." This can happen for a new construction or for changing a former tenant space to make it ready for new tenants to look at and sign a lease.
Construction of a white box or shell often entails:
- Flooring for the foundation
- White walls are standard.
- Typical ceiling heights
- HVAC
- Plumbing
- Restrooms
- For evacuation, there is an elevator and a set of steps.
- Constrictions and adaptations to local building codes
Tenants may not only have their own interior contractor, but they may also have their own interior architect. Interior architects are similar to interior designers, with the exception that they can plan the specific positions of walls and interior separations, as well as doorways and other contributing variables to the overall space layout. These individuals who contribute to the overall process can assist in getting the tenant space completely move-in ready, including final fixtures, wall colors, and shelves, among other things. For the fit-out construction phase, these operations are commonly referred to as TIs or tenant improvements. Of course, the interior architect, tenant, and fit-out contractor aren't the only ones participating; the landlord, building engineer, and local code reviewers should all be involved.
The tenant's agreement with the landlord may reduce the cost of the fit-out construction, but some expenditures will be borne by the tenant for complete completing. In the fit-out TIs, custom finishing expenditures may include:
- Fixtures for lighting
- Plumbing fixtures made to order
- Flooring with a niche
- Customization of the walls
- Custom or additional doors
- Window or fixture customization
- Shelving
- Ceilings that can be customized
The interior architect's and fit-out contractor's jobs are finished once all of these elements are in place, and the tenant can move into the landlord's space.
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