Tenant improvement (TI) projects are some of the most common commercial work. They include office buildouts, retail fit-outs, restaurant conversions, and medical suites. MEP estimating for TI work takes a different approach than new construction.
You must weigh existing conditions and the landlord-versus-tenant scope split. Fit-out projects also carry their own cost drivers. This guide covers all of it.
What Makes TI MEP Different from New Construction
TI work reuses part of an existing building. That changes the scope and the cost. Here is how it differs from new construction.
- Existing MEP infrastructure may be reused, modified, or removed
- Landlord systems (base HVAC, electrical service) have fixed capacity limits
- Core and shell work is the landlord's job; TI work is the tenant's job
- You must coordinate with building management and existing tenants
- Renovation can trigger code upgrades, such as ADA, energy code, and fire alarm
- Short schedules raise labor cost relative to material cost
Typical MEP Cost Per Square Foot for Tenant Improvements
TI MEP cost depends heavily on the space type. Use these 2026 ranges as a guide.
- 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
Every TI project splits scope between landlord and tenant. The lease work letter sets the line. Get this split right before you price anything.
Landlord-provided items usually include:
- Main electrical service and distribution panels to the floor
- Base building HVAC, such as 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 usually handles distribution within the space. That means HVAC branch ductwork and VAV boxes. It also means branch circuits, sprinkler head distribution, and tenant plumbing.
Common TI MEP Scope Items
Tenant scope covers the systems inside the leased space. Here is what each trade includes.
HVAC (Tenant Scope)
Tenant HVAC usually includes VAV boxes and branch ductwork. It also covers diffusers, grilles, thermostats, and zone controls. Add exhaust fans for conference rooms, copy areas, and bathrooms.
Electrical (Tenant Scope)
Tenant electrical covers the sub-panel fed from base building service. It includes branch wiring, receptacles, and lighting. It also adds occupancy sensors and low-voltage systems like data, A/V, and security.
Plumbing (Tenant Scope)
Office TI plumbing is often minimal. It usually means break room sinks and maybe an accessible restroom. Restaurant TI is far heavier.
Restaurant plumbing adds grease interceptors and three-compartment sinks. It also includes dishwashers, floor drains, and kitchen hood drains.
Watch for Hidden TI Costs
TI projects hide cost in the existing building. A few items surprise contractors again and again. Check for each one before you bid.
- Undersized base building HVAC that cannot serve the new layout
- Panel capacity that runs out when you add circuits
- Code upgrades triggered the moment you open the ceiling
- After-hours work required by the building's rules
- Demolition of existing MEP that is not shown on the plans
How to Estimate a TI Project
A TI estimate follows a clear path. It starts with the existing conditions. Then it prices only the tenant scope.
- 1Review the TI drawings and the landlord work letter
- 2Confirm what the base building already provides
- 3Check existing HVAC and electrical capacity for the new load
- 4Take off the tenant MEP scope by trade
- 5Price demolition of any existing MEP to be removed
- 6Deliver a line-item estimate within 24 to 48 hours
The work letter is the key document. It draws the line between landlord and tenant cost.
Frequently Asked Questions
How fast can a TI MEP estimate be completed?
TI estimates are usually faster than new construction. A 5,000 to 15,000 sq ft office TI often comes back within 24 hours. Larger or complex TIs take 24 to 48 hours.
Do you need as-built drawings for a TI estimate?
As-builts help but are not always required. If the landlord's design package documents the base systems well, we can estimate from the TI drawings alone.
Why is restaurant TI so expensive?
Restaurants add heavy plumbing and kitchen exhaust. Grease interceptors, hoods, and floor drains all drive cost. The MEP number climbs fast compared to an office.
Who pays for base building upgrades?
It depends on the lease. Sometimes the landlord funds capacity upgrades. Other times the tenant pays, so read the work letter closely.
Medical office TI carries its own code and system requirements. See our healthcare MEP estimating guide for that scope. Or request an estimate and get results in 24-48 hours.
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