Tenant Improvements 101: A Simple Guide for Texas Landlords and Business Owners
What you need to know before you sign that lease or build-out agreement.

Whether it’s a new retail space, office, or small warehouse, “tenant improvements” (TIs) are where leases become real. This is where walls move, finishes go in, and a generic space becomes a working business.

The catch? If you don’t understand how TIs work, you can sign yourself into surprises.

Who pays for what?

Every lease handles TIs differently:

• Landlord build-out – Owner handles most work to a defined spec.

• Tenant build-out – Tenant funds and manages improvements within agreed limits.

• TI allowance – Landlord contributes a set dollar amount; tenant handles the rest.

Before you agree, make sure the construction side is clear: scope, quality level, timeline, and who actually manages the work.

Codes and approvals

Even simple interior changes often trigger:

• City permits

• Inspections (life safety, accessibility, mechanical, electrical, plumbing)

• Landlord design reviews

For both sides, having a contractor involved early helps avoid drawing changes and scope changes later that cost time and money.

How BC General supports TIs

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We work with both landlords and tenants to:

• Review preliminary plans and flag practical issues

• Provide pricing for different options before you commit

• Execute the build-out with attention to code, schedule, and future flexibility

A clear TI plan helps the relationship between landlord and tenant start with collaboration instead of conflict.

If you’re negotiating a new space in Texas, pulling a contractor into the conversation early is one of the best ways to protect both your budget and your timeline.