Tenant improvements in Los Angeles cost about $60 to $120 per square foot for office, $80 to $150 for retail, $200 to $400 for medical and dental, and $250 to $450 or more for restaurants. A typical TI allowance covers $40 to $80 per square foot, and the tenant pays the rest. Accessibility upgrades triggered by permit value are the most commonly missed line in a commercial budget.
- Office
- $60 to $120 / sq ftPartitions, ceilings, finishes, data
- Retail
- $80 to $150 / sq ftPlus storefront and signage
- Restaurant
- $250 to $450+ / sq ftHood, grease interceptor, health approval
- Typical allowance
- $40 to $80 / sq ftTenant pays the difference
What it costs
| What | Typical Los Angeles range | Notes |
|---|---|---|
| Office, basic refresh | $40 to $70 per sq ft | Paint, carpet, light reconfiguration |
| Office, full build-out | $80 to $120 per sq ft | New partitions, ceilings, lighting, data |
| Retail | $80 to $150 per sq ft | Storefront, lighting, fitting rooms, finishes |
| Medical or dental suite | $200 to $400 per sq ft | Plumbing at every room, dedicated air |
| Restaurant | $250 to $450+ per sq ft | Hood, make-up air, walk-in, interceptor |
| Fitness | $120 to $220 per sq ft | Floors, showers, ventilation |
| White box delivery | $30 to $60 per sq ft | Landlord shell work |
| Accessibility upgrades | Up to 20% of project cost | Triggered by permit valuation |
How the allowance actually works
A TI allowance is a dollar amount per square foot the landlord contributes to the tenant's build-out, usually paid on completion against invoices and lien releases rather than up front. The lease work letter defines what the landlord delivers, what the tenant builds, and who carries each cost.
The work letter is the first document we read on any commercial job, before pricing anything. Most TI disputes are not construction disputes; they are disagreements about what a sentence in the work letter meant.
The accessibility trap
This is the single most common thing missing from a commercial construction budget in California, and it is not optional.
When a permit's valuation exceeds a threshold, California code requires upgrades to the path of travel into and through the space: the entrance, the restrooms, drinking fountains, signage and parking. The requirement is capped at a percentage of the project cost, but on a modest build-out in an older building that cap can still be tens of thousands of dollars, and it applies whether or not the existing conditions were legal when they were built.
We put it in every commercial estimate at the start. Finding it at plan check means redesigning and repricing against a lease commencement date that has not moved.
Why restaurants cost three times what offices do
- A Type I hood, make-up air and the ductwork to the roof
- A grease interceptor, often requiring the slab to be cut
- Floor sinks and indirect waste at every piece of equipment
- A walk-in cooler and the electrical to run it
- County health plan approval, which is a separate review from the building permit
- Fire suppression over the cooking line
- Finishes that survive commercial cleaning
None of this is avoidable and all of it is inspected by more than one agency. A restaurant build-out is the most sequenced work in commercial construction.
Change of use
Converting retail to restaurant, or office to medical, is not just a build-out. It triggers zoning review, sometimes a parking analysis, almost always upgraded mechanical and plumbing, and a new occupancy classification with its own exiting and fire requirements.
Confirm the change of use is approvable before signing the lease. We have seen tenants sign, then discover the parking count makes the use impossible at that address.
Schedule against the lease
Office and retail typically take 6 to 12 weeks of construction after a one to three month permit. Restaurants run 3 to 6 months of construction after permits, with health approval in parallel.
We build the schedule backwards from your commencement date and tell you early if it does not work, because free rent periods are finite and the landlord's clock does not care why the hood is late.
Los Angeles County figures, reviewed 2026-10-29 by America General Contractors, California contractor licence CSLB 1083262. Planning ranges, not a quote, and not legal advice. We confirm the current rules for your parcel before anything is drawn.
Questions
Who pays for the tenant improvements?
It depends on the work letter. Typically the landlord delivers the shell, core, restrooms, storefront and utilities to the space, and contributes an allowance toward the interior. The tenant builds the interior and pays anything above the allowance.
What is a white box?
A finished shell: sealed floor, taped and primed walls, basic ceiling grid and lighting, capped utilities, code-compliant restrooms. It is a starting point, not a usable space.
Can unused TI allowance be taken as free rent?
Sometimes, if the lease says so. It is a negotiating point, not a default, and it is worth raising before the lease is signed rather than after.
Do I need a permit for paint and carpet in a commercial space?
Usually not for finishes alone. The moment you move a partition, change lighting layout, touch plumbing or alter the exiting, you do, and the accessibility trigger comes with it.
Can you work for both the landlord and the tenant?
Yes, and doing both under one contract usually shortens the schedule because the handoff between two contractors disappears. We are explicit about the scope split either way.
