Who pays for the build-out in a commercial lease?

It depends on what you negotiate. The work letter splits landlord and tenant work, and the TI allowance is the landlord's share. Settle it before signing.

It depends entirely on what you negotiate, which is why you settle it before you sign.

Three separate things decide who pays: the work letter splits landlord work from tenant work, the delivery condition sets what the landlord hands you, and the tenant improvement allowance is money the landlord contributes. Blur them together and you can end up covering costs you assumed were the landlord's.

Related FAQ terms

What should I check before leasing commercial space in Deerfield?

In Deerfield, confirm zoning and permitted use, parking, visibility, and total lease cost before signing, not just base rent.

Is Deerfield a good location for a medical or dental practice?

Yes. Deerfield is a strong North suburban market with affluent demographics and corporate presence, well suited to healthcare and service tenants.

Do you represent tenants only in Highland Park?

Yes. In Highland Park we represent tenants and owner-occupiers only, never landlords, so there is no conflict of interest.

What should I check before leasing commercial space in Highland Park?

In Highland Park, confirm zoning and permitted use, parking, visibility, and total lease cost before signing, not just base rent.

Is Highland Park a good location for a medical or dental practice?

Yes. Highland Park is an affluent North Shore market with premium demographics and strong demand for medical and professional space.

Do you represent tenants only in Skokie?

Yes. In Skokie we represent tenants and owner-occupiers only, never landlords, so there is no conflict of interest.

What should I check before leasing commercial space in Skokie?

In Skokie, confirm zoning and permitted use, parking, visibility, and total lease cost before signing, not just base rent.

Is Skokie a good location for a medical or dental practice?

Yes. Skokie is a dense North suburban market with strong medical corridors near major hospitals and Old Orchard, well suited to healthcare tenants.

Do you represent tenants only in Arlington Heights?

Yes. In Arlington Heights we represent tenants and owner-occupiers only, never landlords, so there is no conflict of interest.

What should I check before leasing commercial space in Arlington Heights?

In Arlington Heights, confirm zoning and permitted use, parking, visibility, and total lease cost before signing, not just base rent.

Is Arlington Heights a good location for a medical or dental practice?

Yes. Arlington Heights is an established Northwest suburban market with deep healthcare demand and strong demographics, ideal for medical tenants.

Do you represent tenants only in Itasca?

Yes. In Itasca we represent tenants and owner-occupiers only, never landlords, so there is no conflict of interest.

What should I check before leasing commercial space in Itasca?

In Itasca, confirm zoning and permitted use, parking, visibility, and total lease cost before signing, not just base rent.

Is Itasca a good location for a medical or dental practice?

Yes. Itasca is a well-connected DuPage County village near O'Hare with strong I-290 and I-355 access, well suited to healthcare and service tenants.

Do you represent tenants only in Mount Prospect?

Yes. In Mount Prospect we represent tenants and owner-occupiers only, never landlords, so there is no conflict of interest.

What should I check before leasing commercial space in Mount Prospect?

In Mount Prospect, confirm zoning and permitted use, parking, visibility, and total lease cost before signing, not just base rent.

Is Mount Prospect a good location for a medical or dental practice?

Yes. Mount Prospect is a strong Northwest suburban market with good daytime population and O'Hare access, well suited to healthcare and service tenants.

Do you represent tenants only in Deerfield?

Yes. In Deerfield we represent tenants and owner-occupiers only, never landlords, so there is no conflict of interest.

What happens if my build-out costs more than the TI allowance?

You cover the overage out of pocket. That is why you lock scope early, keep a ten to fifteen percent contingency, and negotiate the allowance before you sign.

Can my landlord delay my build-out?

It happens, through slow approvals or late delivery. A good lease ties your dates and remedies to the landlord's performance so delays are not all your risk.

What is a certificate of occupancy and when do I need one?

A certificate of occupancy is the city's sign-off that a finished space is safe to use. You need it after inspections pass, before you can legally open.

How many parking spaces does a medical office need?

Often four to five spaces per 1,000 square feet in suburban codes, more than a standard office. The exact ratio is set by the local municipality for your use.

What ADA requirements apply to a medical office?

Medical offices must meet the 2010 ADA Standards for an accessible route, entrance, restroom, exam room, reception, and parking. A build-out can trigger more.

How much does it cost to build out a dental office per square foot?

In 2026, budget roughly 150 to 300 dollars per square foot in the Chicago area, with dental, imaging, and surgical space often at the higher end.

What is the difference between a vanilla box and a warm shell?

A warm shell has HVAC, power, and often restrooms. A vanilla box goes further, with finished walls, ceiling, and lighting, ready for your build-out.

Do I need a permit to build out medical office space in Chicago?

Yes. Your architect submits a permit set and work cannot start until the city issues the permit. You also need a certificate of occupancy before you open.

How long does a dental office build-out take?

Usually four to eight months from design to opening: design, permitting, construction, and inspections. Larger or surgical practices can take longer.

How do I decide whether to buy or lease my practice space?

It depends on the location's long-term fit, whether the numbers work, and your capital needs. Buying builds equity; leasing preserves flexibility.

Why work with a healthcare-focused commercial real estate advisor?

Healthcare real estate advisors understand medical facilities, patient needs, and industry-specific requirements that general brokers may overlook.

Can I purchase a medical office building before my practice is fully established?

Yes. Many healthcare professionals purchase medical office buildings early, provided they meet financing requirements and have a strong business plan.

What should I consider before purchasing a medical office building?

Consider location, accessibility, financing, building condition, parking, zoning, operating costs, + future growth before purchasing a medical office building.

How long does it take to purchase a medical office building?

Most medical office building purchases take between 90 and 180 days, depending on financing, due diligence, negotiations, and closing.

What financing options are available for medical office buildings?

Medical office buildings can be financed through conventional commercial loans, SBA loans, or specialized healthcare lending programs.

Is it better to buy or lease a medical office building?

Buying and leasing each offer unique advantages depending on your practice’s goals and stage of growth.

What is an owner-occupied medical office building?

An owner-occupied medical office building is a commercial property owned and occupied by a healthcare practice rather than leased from a landlord.

Do you represent landlords as well as tenants?

No. We work exclusively for tenants and buyers, which avoids conflicts of interest and keeps our advice objective and on your side.

When should a tenant engage real estate advisory?

Ideally before you tour spaces or discuss lease terms, when your options and negotiating leverage are at their highest. Earlier is always better.

When should we engage tenant representation?

Ideally before you start touring spaces or talking with landlords, so strategy and leverage are on your side before any commitment is made.

Is this brokerage or advisory?

Our work is advisory-first. We guide the strategy behind your real estate decisions, then represent you through the transaction, not just the deal.

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Chicago & suburban markets

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