5 Mistakes Tenants Make on Their First Buildout
The biggest budget killers in retail TI projects — and how to avoid them before you sign the lease.
1. Signing the lease before walking the space with a contractor
A lease is a financial document, but a retail space is a construction project. The most expensive mistakes — undersized electrical service, missing grease traps, accessibility upgrades, slab thickness for heavy fixtures — are all discovered after lease signing, when you have zero leverage left.
2. Treating the TI allowance as the budget
Landlord TI allowances are a contribution, not a budget. Real buildouts routinely cost 1.5–3x the allowance once you factor in finishes, fixtures, low-voltage, signage, and soft costs. Build your number first, then negotiate.
3. Designing for the photo, not the operator
Beautiful renderings hide the daily reality: where do shipments land, where does staff break, how does a single person close the store at night? Operator-first design pays back every single shift.
4. Skipping pre-construction
Pre-con costs a few thousand dollars and saves tens of thousands in change orders. Skip it and you'll pay the same money — just later, and with no leverage.
5. Assuming the GC is your project manager
A general contractor builds. A project manager protects your interests across landlord, designer, GC, and trades. On retail TI, you need both — and they shouldn't be the same person.