A commercial tenant improvement (TI) is any construction work done to customize a leased commercial space for a specific tenant’s use. Whether you are a business owner building out a new office, a restaurateur fitting out a kitchen, or a retailer creating a custom store environment, a tenant improvement project in Los Angeles requires a licensed general contractor, building permits, and careful coordination between your lease terms, your landlord, and the building department. APLA Construction (CA Lic #1136359) handles commercial tenant improvements throughout Greater Los Angeles for small businesses and property owners.
A tenant improvement covers all construction modifications made to the interior of a leased commercial space. This includes:
Tenant improvement costs in Los Angeles vary widely based on the type of space, the extent of build-out, and finish level. Here are current ranges by space type:
In most commercial leases in Los Angeles, TI costs are negotiated as part of the lease terms:
Negotiating a strong TI allowance before signing the lease is one of the highest-leverage things a business owner can do. APLA can provide a preliminary cost estimate before you sign, so you know what allowance to negotiate for.
All commercial tenant improvements in Los Angeles that involve structural, electrical, plumbing, or mechanical work require building permits. The permit process for commercial TI in the City of LA goes through LADBS and typically involves:
California has some of the strictest ADA and accessibility requirements in the United States. When a tenant improvement exceeds 20% of the building’s replacement cost, ADA upgrades to restrooms, parking, path of travel, and building entrance may be required — even if those areas are outside the TI scope. APLA evaluates ADA compliance requirements at the project scoping stage so there are no surprises mid-construction.
Business owners who plan their TI timeline before signing the lease avoid the costly situation of paying rent on a space that is not yet usable.
Commercial TI costs in Los Angeles range from $40/sq ft for a basic office refresh to $400/sq ft for a full-service restaurant build-out. A 2,000 sq ft office TI at mid-range finishes runs $160,000–$300,000. Restaurant TI for a 1,500 sq ft space typically runs $300,000–$600,000 due to commercial kitchen, ventilation, and health department requirements.
Yes. Any commercial TI involving structural changes, electrical, plumbing, or mechanical work requires a building permit from LADBS (for City of LA properties) or the applicable city building department. Unpermitted commercial work creates liability, can invalidate your Certificate of Occupancy, and creates problems with inspections and lease renewals. APLA handles all permit coordination.
Standard commercial TI plan check at LADBS takes 4–8 weeks for a complete submittal. Restaurant and medical office submittals that require health department or fire department review add 2–4 weeks. Expedited plan check is available at LADBS for an additional fee and can reduce review time to 2–3 weeks.
A TI (tenant improvement) allowance is money the landlord contributes toward your build-out costs, expressed as a per-square-foot amount. In the current Los Angeles market, allowances for Class B office space typically run $40–$80/sq ft. To negotiate effectively, get a preliminary construction cost estimate before signing the lease — APLA provides these at no charge — so you know the real cost and how large an allowance to push for.
Yes. APLA manages the full TI process — design coordination, permit submittal, construction, inspections, and final Certificate of Occupancy — under one contract. We have experience with LADBS, health department approvals for restaurants, and the landlord approval processes common in LA commercial leases.
APLA handles small commercial tenant improvements for offices, retail shops, medical and dental offices, restaurants (fast casual and full service), salons, fitness studios, and professional service businesses throughout Greater Los Angeles. We focus on projects under 10,000 sq ft where our hands-on approach delivers the best results.
APLA provides free preliminary estimates for commercial tenant improvement projects throughout Greater Los Angeles — before you sign your lease or commit to your build-out budget.
Call: (818) 818-4419
Email: info@aplaconstruction.com
CA General Contractor License #1136359
Serving Sherman Oaks, Studio City, Encino, Culver City, Santa Monica, Pasadena, Glendale, Burbank, and all of Greater Los Angeles. Learn more about our commercial construction services.