Tenant improvements — commonly called TIs — are the construction work done to customize a leased commercial space for a specific tenant's needs. In South Florida's active commercial real estate market, TI construction is one of the most frequent project types for commercial general contractors. Yet it's also one of the most misunderstood — particularly among tenants signing their first commercial lease.
This guide covers everything landlords, tenants, and brokers need to know about TI construction in Palm Beach and Broward Counties: what TI includes, who pays for it, how allowances work, what permitting looks like, and how to choose the right tenant improvement contractor in South Florida.
What Is a Tenant Improvement?
A tenant improvement is any construction or renovation work performed to make a commercial space suitable for a specific tenant's use. This can range from a simple repaint and carpet replacement in an office suite to a full gut-renovation of a raw shell space for a medical clinic or restaurant.
Common TI scope items include:
- Demolition of existing walls and finishes
- New partition framing and drywall
- Electrical: panel upgrades, new circuits, lighting
- Plumbing: additional restrooms, sinks, floor drains
- HVAC: new ductwork, diffusers, or dedicated systems
- Flooring: tile, LVP, polished concrete, or carpet
- Ceilings: ACT grid, drywall, or exposed
- Storefront: new glass, doors, or signage blocking
- ADA compliance: accessible restrooms, path-of-travel
- All permits and inspections through Certificate of Occupancy
Who Pays for Tenant Improvements?
This is often the most negotiated element of a commercial lease in South Florida. There are several structures:
TI Allowance (most common): The landlord provides a fixed dollar amount per square foot — say, $40–$75/SF in the current Palm Beach County market — to fund the build-out. The tenant uses those funds to construct the space, often selecting and managing their own GC. If the build-out costs more than the allowance, the tenant covers the difference. If it costs less, the landlord typically keeps the remainder (though this is negotiable).
Turnkey Build-Out: The landlord agrees to deliver the space in a specific finished condition — essentially building to the tenant's approved plans at the landlord's cost. The risk stays with the landlord; the tenant moves in when it's done.
Tenant Self-Funds: In some situations — particularly strong tenants or very favorable lease terms — the tenant pays for the entire build-out themselves and may receive a rent reduction or abatement in exchange.
TI Allowances in the South Florida Market
TI allowances in Palm Beach and Broward Counties have risen steadily alongside construction costs. As of early 2025, market-rate TI allowances for standard office or retail spaces typically range from $35–$80 per square foot, depending on property class, lease term, and market conditions. Medical, dental, and restaurant spaces — which require more intensive MEP work — often see higher allowances or turnkey arrangements.
It's important to match the allowance to the actual scope before signing the lease. A common mistake is agreeing to a $45/SF TI allowance on a medical office build-out that will realistically cost $90/SF. Getting a preliminary estimate from a qualified TI contractor in South Florida before finalizing lease terms protects both parties.
Permitting Tenant Improvements in Palm Beach County
Most commercial tenant improvements in Palm Beach County require a building permit. The permit is typically pulled by the licensed general contractor — not the tenant or landlord directly. The process involves submitting construction drawings prepared by a licensed architect or engineer, paying applicable fees, and waiting for review.
Review timelines in Palm Beach County currently run approximately 3–8 weeks for commercial tenant improvements, depending on project complexity and the specific municipality (West Palm Beach, Palm Beach Gardens, Boca Raton, and unincorporated Palm Beach County each have their own building departments with slightly different processes and timelines).
Once permits are issued, inspections occur at key construction milestones: rough framing, rough MEP, insulation, and final. The project isn't complete — and the tenant can't legally occupy the space — until a Certificate of Occupancy (CO) is issued.
Typical TI Construction Timeline
A realistic TI timeline in South Florida, from lease execution to CO:
- Weeks 1–3: Design and construction documents (architect/engineer)
- Weeks 3–6: Permit submittal and review
- Weeks 6–14: Construction (varies by scope — a simple office TI may be 6 weeks; a medical office or restaurant can run 12–20 weeks)
- Final week: Punch list, final inspection, CO
Total time from lease signing to move-in: typically 14–24 weeks for standard commercial TI projects. Plan accordingly when setting opening dates or negotiating rent commencement.
Choosing a Tenant Improvement Contractor in South Florida
The TI contractor you choose has a significant impact on schedule, budget, and the quality of the finished space. Key factors to evaluate:
- Commercial TI experience: Ask specifically about TI projects in your use type — office, retail, medical, restaurant. Each has different requirements.
- Florida license: Verify an active CGC or CBC license through the DBPR. Never hire an unlicensed contractor for commercial work.
- Permitting track record: Does the contractor prepare complete, code-compliant submittals? Incomplete submissions add weeks to your timeline.
- Communication: TI projects move fast. You need a GC who surfaces issues early and communicates proactively.
- References: Ask for references from landlords or property managers — not just tenants.
Working with Pajaziti & Associates on Your TI Project
Pajaziti & Associates is a Florida Certified Building Contractor (CBC1265699) specializing in commercial tenant improvements across Palm Beach, Broward, and Martin Counties. We work directly with tenants, landlords, brokers, and developers to deliver build-outs on time, on budget, and to spec.
Every TI project starts with a detailed pre-construction estimate that helps you validate the TI allowance before the lease is signed. Contact us to discuss your project.