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What is an Interior Build-Out?

Updated: Mar 7


QUESTION: What is an Interior Build-Out?

How Would My Business Benefit?

Some South Florida businesses or facility owners have more questions. Is this my responsibility or my landlord’s? How can I best navigate the process of an interior build-out?

Whether you’re starting a new business and need space, or are relocating, more than likely you will need to complete an interior build-out. We will answer “What is an Interior Build-Out?” and more in this post.

ANSWER: interior build out is changing an existing commercial shell into a personalized, usable space for your business’ specific needs. An interior build-out is also commonly referred to as commercial tenant improvements, or leasehold improvements. In most cases, a business looking at a new location will require an interior build-out since it’s rare to find a commercial space out of the box that can meet their exact needs.

One of the more confusing aspects to an interior build-out can be figuring out who is responsible for what. There are many ways tenants (South Florida business owners looking to lease a new space and complete an interior build-out) and landlords can handle the financial aspects and responsibilities of a tenant improvement project.



Group Inc. have experienced the financial responsibility break-down of a commercial build-out:

1. The landlord might feel strongly that the potential tenant will be an improvement to the space and they will cover the entire build-out cost by either paying the contractor directly or by reimbursing the new tenant. In these instances, it’s common for the landlord to build in the overall cost of the build-out over the course of the entire lease.

2. In some instances, the landlord will want to reimburse the tenant to ensure they don’t get in the position of a completed space, and the tenant changing their mind after they’ve paid the build-out costs up front.

3. Another way this can be handled is the landlord will give a straight square footage allowance that they will cover, and the tenant funds the rest.

4. The last/most common way for the landlord and tenant to handle the financial responsibility of a build-out is rent-concessions: reduced or free rent for a period of time to cover the cost of the build-out

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