Construction Tenant Improvement Cost Calculator

Tenant improvement allowances and over-standard buildouts drive lease economics.

Rentable sq ft

Fit-out $/sf

FF&E $/sf

Design fees %

TI allowance / sf

Tenant out-of-pocket

$414,400

Total TI cost

$894,400

Landlord TI allowance

$480,000

How the math works

Total TI = sq ft × (fit-out + FF&E + design fee %). Net to tenant = total − allowance.

8,000 × $85 + 8,000 × $20 + 8% design = $680k + $160k + $54.4k = $894.4k − $480k = $414k tenant.

How to Use

Enter rentable sq ft.
Enter fit-out $/sf.
Enter ff&e $/sf.
Enter design fees %.
Enter ti allowance / sf.
Read tenant out-of-pocket.

Frequently Asked Questions

TI cost benchmarks?

Class A office: $50–120/sf for full fit-out (open-plan), $80–200/sf for premium with private offices, conf rooms. Medical office: $150–300/sf (specialized plumbing, RF shielding, lead-lined). Retail vanilla shell: $25–60/sf. Restaurant: $200–500/sf (kitchen + finishes). Industrial: $5–25/sf (typically white box). Standard TI allowance from landlord: $30–80/sf for office (5–10 yr lease). Over-standard paid by tenant amortized over lease or out-of-pocket.

How does this impact project budget?

Construction budgets layer hard costs (50–65%), soft costs (15–25%), financing (5–10%), contingency (5–10%), and developer fee (3–5%). Schedule risk often equals or exceeds cost risk — every month delay carries carry cost (interest, real estate tax, insurance, opportunity cost) of 0.5–1.5% of project budget. This calculator quantifies one cost component.

Owner-controlled vs GMP vs CM-at-risk?

Lump sum/GMP: contractor takes risk above guaranteed maximum price, owner pays for change orders. CM-at-risk: open book, fee + GMP, more transparent. Construction management: agent for owner, GC subcontracted directly. Design-build: single accountability, faster but less price competition. Match delivery method to project complexity and owner sophistication.

Schedule and cost contingency?

Standard contingency: 10% of hard cost for entitlement, 5–8% for construction. Schedule contingency: 60–90 days buffer past target completion. Force majeure provisions: weather, material lead time, labor strike, permit delay. Track via critical path method (CPM) schedule. Major lender draws contingent on schedule + cost variance to budget remaining within 5%.