If you’re a commercial property owner, asset manager, or tenant rep working a deal in Atlanta, “tenant improvement” — TI — is one of those terms that comes up in every lease conversation and rarely gets explained clearly. This is a practical guide to how TI projects actually run in the Atlanta market.
What “tenant improvement” actually means
A tenant improvement (TI) is any construction work done to a leased commercial space to make it usable for a specific tenant — typically office, retail, restaurant, or medical. The classic examples:
- A blank shell becoming a Class A office floor
- A vanilla-box retail space becoming a restaurant with a kitchen, dining room, and bar
- An existing office floor getting demolished and rebuilt for a new tenant
- Medical office or dental fit-up with specialized MEP
Sometimes TI is light (paint, carpet, new partitions). Sometimes it’s a near-ground-up rebuild within the four walls of the lease.
The TI allowance — the most confusing part
TI work is almost always negotiated with a “TI allowance” — a dollar amount per square foot the landlord agrees to contribute to the build-out as a lease incentive. In metro Atlanta in 2026, ranges typically look like:
- Class A office, 5+ year lease: $40–$90/sf TI allowance (sometimes more for anchor tenants)
- Retail / restaurant, 7-10 year lease: $30–$75/sf, often higher for restaurant build-outs with kitchen scope
- Medical / dental: $50–$120/sf, depending on plumbing and MEP intensity
- Industrial / flex: $10–$25/sf, lower because base condition is closer to usable
A common mistake tenants make: assuming the TI allowance covers their entire build-out. It rarely does, especially for restaurants and medical. The tenant typically funds the gap from their own capex.
What drives a TI budget
Actual construction cost varies wildly. The big drivers:
- MEP density. How much new electrical, plumbing, HVAC are you running? Restaurant kitchens and medical offices are MEP-heavy. Open-plan offices are MEP-light.
- Demolition scope. Demoing existing finishes and reusing the shell is cheaper. Demoing partitions, ceiling grids, and MEP rough-in is more expensive.
- Finish level. Class A finish (millwork, stone, premium flooring) costs 2-3x basic Class B finishes.
- Specialty permits. Restaurants need hood, grease, and health permits. Medical offices need life safety and accessibility compliance. Each adds time and cost.
- Building constraints. After-hours work rules, freight elevator access, dust containment — all of these affect labor cost.
Realistic TI timelines
A clean office TI in metro Atlanta — say 8,000 sf — typically runs:
- Design & permitting: 4-8 weeks (architect/engineer drawings, City of Atlanta permit review)
- Demolition: 1-2 weeks
- Rough-in (framing, MEP): 3-5 weeks
- Above-ceiling inspection & close-up: 1 week
- Finishes (drywall, paint, flooring, doors, millwork): 3-5 weeks
- Punch list & final inspection: 1-2 weeks
Total: roughly 14-22 weeks from contract execution to certificate of occupancy.
Restaurant TI runs longer — 22-32 weeks is normal, primarily because of MEP density, kitchen equipment lead times, and health department coordination.
Permitting in Atlanta — the realities
City of Atlanta commercial permits go through the Office of Buildings. Review timelines depend on workload and project complexity:
- Simple TI (no MEP, no occupancy change): 2-4 weeks
- Standard TI with MEP: 4-8 weeks
- Complex (assembly, restaurant, medical): 6-12+ weeks
- Plan revisions: add 2-4 weeks each round
Surrounding jurisdictions vary — DeKalb, Fulton (unincorporated), Cobb, Gwinnett each have different review queues. Sandy Springs, Brookhaven, and Dunwoody have their own permitting offices.
Smart tenants hire their architect and GC before lease execution if possible — getting a permit package ready to submit on lease commencement saves 4-6 weeks of dead lease time.
How to pick a TI contractor
Quick checklist for vetting GCs on a TI project:
- Active commercial GC license in Georgia (#GCCO009212 is verifiable for us)
- Insurance certificates — general liability $1M+, workers comp, auto, builders risk
- Bonding capacity — should be available on request for any meaningful TI
- Reference projects — at least two similar-size, similar-scope, recent completions
- Local sub relationships — TI work depends on subs who can be on-site fast and reliably
- Permit experience in your jurisdiction — Atlanta proper vs. DeKalb vs. North metro all run differently
- Punch-list reputation — ask references specifically about how clean the punch list was and how fast it closed
Common mistakes
- Signing a lease with a low TI allowance assuming the GC will “just work with it.” Run a real conceptual budget before lease execution, not after.
- Hiring the cheapest bidder. TI work is highly variable and the lowest bid almost always omits scope that resurfaces as change orders.
- Not building float into the schedule. Permit revisions, long-lead MEP equipment, and inspector availability all add days you didn’t plan for.
- Ignoring after-hours work rules. Many Class A buildings require demo and noisy work after 6 PM. That’s a 20-30% labor premium that has to be in the budget.
Working on a TI project in Atlanta? Integrity CRR runs commercial tenant improvements across metro Atlanta — Class A office, retail, multi-tenant, medical. Request a free estimate or call (833) 423-6255.