Landlord Work vs. Tenant Work

Almost every build-out is a division of labor, and the lease should spell it out. Landlord work is whatever the landlord agrees to build and pay for, often the base systems, demising walls, or delivering a certain condition. Tenant work is everything you take on, usually the interior build-out specific to your practice. The document that lays this out is called the work letter.

The line between the two is pure negotiation, and it has real money attached. A detailed work letter prevents the classic dispute where each side assumed the other was handling, and paying for, a major piece of the job.

The split between landlord work and tenant work decides a big chunk of your real cost to occupy a space. Vague language is where expensive surprises hide. Insist on a detailed work letter that itemizes exactly what the landlord delivers and pays for, so nothing important lands on your budget by default.

A work letter states the landlord delivers the space with HVAC, a finished restroom, and electrical to the panel, while the tenant handles all interior walls, finishes, and specialty plumbing. Because it is itemized, there is no mid-project argument over who pays for the restroom or the rooftop unit.