Tenant improvement (TI) projects are among the most common commercial construction scope types to office buildouts, retail fit-outs, restaurant conversions, and medical office suites. MEP estimating for TI work requires understanding existing building conditions, landlord versus tenant scope splits, and the unique cost drivers of fit-out construction.
What Makes TI MEP Different from New Construction
- Existing building MEP infrastructure may need to be reused, modified, or removed
- Landlord-provided systems (base building HVAC, electrical service) have fixed capacity constraints
- Core and shell work is typically landlord responsibility; TI work is tenant responsibility
- Coordination with building management and existing tenants during construction
- Code upgrades may be triggered by renovation scope to ADA, energy code, fire alarm
- Short project durations increase labor costs relative to material costs
Typical MEP Cost Per Square Foot for Tenant Improvements
- Standard office buildout: $18 to $35 per sq ft MEP
- Law firm or executive office (high finish): $30 to $55 per sq ft MEP
- Medical office: $45 to $80 per sq ft MEP
- Restaurant full buildout: $65 to $120 per sq ft MEP
- Retail standard: $12 to $22 per sq ft MEP
- Lab or R&D space: $60 to $110 per sq ft MEP
Understanding Landlord vs. Tenant MEP Scope
Most commercial leases define a landlord work letter that specifies what MEP systems are provided by the building owner. Common landlord-provided items include:
- Main electrical service and distribution panels to the floor
- Base building HVAC to central chilled water and hot water plants
- Building sprinkler main and risers
- Base building fire alarm panel and infrastructure
- Plumbing risers to the floor
The tenant is typically responsible for distribution within the space to HVAC branch ductwork and VAV boxes, electrical panels and branch circuits, sprinkler head distribution, and tenant-specific plumbing.
Common TI MEP Scope Items
HVAC (Tenant Scope)
Tenant HVAC scope usually includes VAV box selection and installation, branch ductwork distribution, diffusers and grilles, thermostats and zone controls, and exhaust fans for conference rooms, copy areas, and bathrooms.
Electrical (Tenant Scope)
Tenant electrical scope covers the sub-panel fed from base building service, branch circuit wiring, receptacles, lighting fixtures, occupancy sensors, and low-voltage systems (data, A/V, security).
Plumbing (Tenant Scope)
For office TI, plumbing is often minimal to connecting break room sinks and potentially adding an accessible restroom. Restaurant TI has extensive plumbing: grease interceptors, three-compartment sinks, dishwashers, floor drains, and kitchen hood drain systems.
Frequently Asked Questions
How fast can a TI MEP estimate be completed?
TI projects are typically faster to estimate than new construction. A 5,000-15,000 sq ft office TI estimate is often deliverable within 24 hours. Larger or more complex TIs take 24-48 hours.
Do you need as-built drawings for a TI estimate?
As-builts help but aren't always required. If base building systems are well-documented in the landlord's design package, TI estimates can be produced from the tenant improvement drawings alone.
Topics