Before You Sign a Commercial Lease: 7 Tenant Improvement Questions That Can Protect Your Opening Date

1. Is my business use permitted in this specific space?

A former office, shop or restaurant is not automatically approved for your intended operation. Ask your architect to investigate existing approvals, proposed occupancy and any change-of-use implications. The answer can affect life safety, parking, restrooms, ventilation and the agencies that review the project.

Get the available building records and identify the correct city or county department. Do not use a broker’s description or a neighboring tenant’s approval as the project’s code analysis. Obtain appropriate professional and legal advice before signing lease commitments tied to an assumed use.

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2. What exactly does the landlord deliver?

Write down the condition of the space at handover. Define which party handles roof work, structural repairs, base-building systems, existing violations and utility service. A shell described as “ready” may still need work before your build-out can begin.

Request access to available as-built drawings and maintenance information. Record observed conditions and unresolved investigations with the project team. A scope matrix should name a responsible party for each item; the construction proposal should not silently absorb obligations that the lease leaves unclear.

3. What does the tenant improvement allowance actually pay for?

An allowance is a lease funding mechanism, not proof that the entire project is funded. Review whether the agreement includes design, permitting, construction, fixtures or only selected eligible costs. Ask about disbursement timing, invoices, lien documentation, approval conditions and any unused balance.

Keep total project cost and cash-flow exposure separate. Reimbursement after completion can still require the tenant to fund work earlier. Discuss the proposed terms with your broker and attorney, and have the construction team price an explicit scope rather than reverse-engineering a project to fit a headline allowance.

4. Can the existing HVAC, electrical and plumbing support the business?

Provide an equipment list and operating requirements before design. Cooling needs, ventilation, electrical loads and plumbing connections can change significantly between occupants. Existing equipment should be evaluated for capacity, condition and suitability—not accepted merely because it runs.

Ask which upgrades require landlord consent, roof access or utility coordination. Confirm installation routes and service clearances. These dependencies belong in the schedule and budget assumptions before finishes are selected.

5. What accessibility work is triggered by the alteration?

Federal regulation 28 CFR 36.403 addresses path-of-travel obligations when alterations affect a primary-function area. It includes the route and certain facilities serving the altered area, and discusses landlord/tenant situations. The design team must also evaluate applicable state and local accessibility requirements.

The federal 20% disproportionality provision is not permission to ignore accessibility and is not a universal cap on all ADA work. The rule has specific cost, scope and prioritization provisions; alterations themselves and other obligations need separate evaluation. Have qualified design professionals determine applicability rather than budgeting a blanket percentage.

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6. Who controls the permit and landlord-approval process?

Name the applicant, design coordinator and landlord reviewer. Identify the necessary submissions and dependencies, including building, fire or other reviews applicable to the business. In Pasadena, the City describes concurrent review and consolidated corrections; parallel review still depends on a complete, coordinated package.

Track landlord approval and jurisdictional approval as separate activities. A permit does not replace the lease’s consent requirements, and landlord consent does not authorize unpermitted work. Ask the team to assign responsibility for responding to corrections.

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7. Is my opening date based on dependencies or optimism?

Work backward from the intended opening to approvals, procurement, construction, inspections and any occupancy authorization or business-specific clearance. Identify equipment and finish selections that can delay the next trade. Keep furniture, technology, staff training and business licensing in the owner’s launch plan.

Separate a target date from a contractual commitment. Ask what assumptions support the schedule and what happens if an approval or long-lead item changes. There is no reliable universal permit or build-out duration for every commercial space.