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Chapter 4 Workbook

Three Commercial Build-Out Drills

A printable companion to Commercial Build-Outs. Fill in the prompts on a printout at the kitchen table, or type into them on screen and save as a PDF.

How to use this workbook. These three drills are the same ones I run with tenant-builders before drywall goes up. The first drill asks you to do the TIA math against the realistic build-out cost — and to read the work letter's scope language line by line so you know which party pays for what. The second drill asks you to walk the shell with a tape measure and find the slab depression, the stranded MEP stubs, and the panel amperage that don't match your new layout. The third drill hands you a stamped-looking plan set with deliberate sequencing errors and asks you to red-flag them — the cheapest habit you can build before the rough-in order is locked. Walk through the prompts in order. Bring the printed page to your architect’s (or commercial broker’s) first working session — a marked-up work letter with your answers beats a blank stare every time.

Exercise A

[TBD — LauraLee will pick the exact drill]

TBD scenario description — Commercial Build-Out Track. [TBD lot/lease description — e.g., 2,100 sq ft end-cap retail lease in a Class B strip center outside a regional mall. Shell delivered "as-is" with HVAC stubbed to the space, a 200-amp panel, and a sprinkler loop roughed in. Lease offer: $42 per sq ft TIA, 5-year term. Broker says "it's ready, you can be open in 60 days." Assume a small restaurant or specialty-retail use.]
  1. [TBD] TIA dollar number in the lease vs. realistic build-out gap
  2. [TBD] Items the TIA typically excludes
  3. [TBD] Who pays each line item per work-letter clause
  4. [TBD] Reimbursement timing — cash flow story
  5. [TBD] What happens to unspent TIA
  6. [TBD] Difference between TIA and the open-the-door budget
  7. What to look for — [TBD — LauraLee will write the closing rule for this drill, e.g., the per-sf TIA number in the lease is the WRONG number to budget against; the work-letter scope language is the right one.]
Exercise B

[TBD — LauraLee will pick the exact drill]

TBD scenario description — Commercial Build-Out Track. [TBD lot/lease description — e.g., 1,850 sq ft former 1990s law office in a multi-tenant office park. Base building has central HVAC, restroom core on the corridor, ADA-accessible entry. Slab has a visible patch where the receptionist's desk used to be (~6" depression). HVAC branch lines run to where private offices used to be — long past the new layout's partition walls. Plumbing: cold-water line lands 12' from where the new coffee bar needs to go. Electrical: legacy 100-amp panel with 12 circuits. Assume an office-to-clinic conversion with three exam rooms plus reception.]
  1. [TBD] Slab elevation math — how flat is "as-is"?
  2. [TBD] MEP stub locations vs. new layout needs
  3. [TBD] Panel amperage deficit for the new use
  4. [TBD] ADA path through the new layout
  5. [TBD] Demolition cost before new construction
  6. [TBD] What the existing-conditions report should have flagged
  7. What to look for — [TBD — LauraLee will write the closing rule, e.g., "as-is" hides the slab depression and the MEP stubs that the new layout doesn't fit. The existing-conditions report is the document that decides whether the build-out fits the lease.]
Exercise C

[TBD — LauraLee will pick the exact drill]

TBD scenario description — Commercial Build-Out Track. [TBD lot/lease description — e.g., 2,400 sq ft restaurant build-out plan set submitted for permit. Plan set shows: kitchen in the back-left corner, dining in the front, restroom core on the corridor (existing), grease interceptor in the basement, rooftop HVAC unit with a NEW curb needed, gas line from the existing riser. The set has been informally reviewed by the planning office and is awaiting your red-flag review. Spot the sequencing errors that would create change orders mid-construction.]
  1. [TBD] MEP sequencing red flags identified
  2. [TBD] Code-mandatory vs. order-of-trade preference
  3. [TBD] Cheapest fix for each red flag
  4. [TBD] Which fix forces a redesign?
  5. [TBD] Field-conditions contingency (10–15% rule)
  6. [TBD] Cost of resubmittal vs. fix-on-markup
  7. What to look for — [TBD — LauraLee will write the closing rule, e.g., MEP rough-in is the longest lead-time path on a commercial build-out; the order of trades is the order in which the budget gets locked. Read the coordination drawings before you walk the slab.]
Case Study

[TBD — Closing case walkthrough]

TBD case-study description — Closing walkthrough. [TBD — a 2,000 sq ft [restaurant / retail / clinic] TI in a Class [A / B] mixed-use [strip center / office park / ground-floor retail]. TIA: $35/sf ($[TBD] lump sum). Lease: 7-year term. Work-letter: standard. A 60-day TI window. A tenant-builder who wants to be open by [TBD date]. Walk through the closed-out numbers and the four mistakes that would have changed them.]
  1. [TBD] Financial summary (TIA, build-out, gap)
  2. [TBD] Change orders absorbed
  3. [TBD] MEP/ADA sequencing outcome
  4. [TBD] Contingency used vs. held
  5. [TBD] Time-to-open vs. scheduled
  6. [TBD] Three lessons for the next tenant-builder
  7. What to look for — [TBD — LauraLee will write the closing rule for the case walkthrough, e.g., a tenant build-out that survives the gap between the lease and the certificate of occupancy is a build-out that was over-planned, not under-planned.]

Bring This to Your Architect-or-Broker

Three drills and a closing case, twenty-eight prompts, one afternoon of work. If your numbers show a lease where the TIA covers a realistic build-out and the work-letter scope fits your use, you’re ready to sign. If they show a gap the landlord isn’t disclosing, walk away or renegotiate — before the rent clock starts. The best time to read a work letter is before you sign a lease. The second-best time is before drywall.

Read the Full Guide

Four chapters covering the lot, the site walk, the permit office, and the commercial build-out. Each builds on the last.

Chapter 1: Property & Site Analysis Chapter 2: DIY Site Analysis & Setbacks Chapter 3: Zoning, Setbacks & Permit Pitfalls Chapter 4: Commercial Build-Outs Chapter 2 Workbook Chapter 3 Workbook Chapter 4 Workbook You’re reading Chapter 4 Workbook

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Each lease and each shell is different. An architect can read the work letter, walk the ADA path, and run the MEP rough-in sequence before you commit.

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