What Are Tenant Improvements?
Tenant improvements—also known as leasehold improvements or tenant build-outs—refer to the customization of a leased space to meet the specific needs of a tenant. This can include:
- Reconfiguring office layouts
- Installing new flooring, lighting, or fixtures
- Upgrading HVAC systems
- Enhancing ADA accessibility
- Creating specialized environments like recording studios or medical offices 1
In Los Angeles, where every square foot counts, these upgrades can make or break a lease deal.
Why Tenant Improvements Matter in LA
Los Angeles’ commercial landscape is incredibly diverse—from tech startups in Santa Monica to law firms in Century City. Each tenant has unique operational needs, and tailored improvements help meet those demands while boosting productivity and comfort.
For landlords, investing in TIs can lead to:
- Higher occupancy rates
- Longer lease terms
- Improved tenant satisfaction
- Increased property value
Navigating Permits and Compliance in Los Angeles
The Los Angeles Department of Building and Safety (LADBS) oversees tenant improvement permits. These include:
- Building permits for structural changes
- Electrical and plumbing permits
- Mechanical permits for HVAC upgrades
- ADA compliance reviews for accessibility features 1
The permitting process can be complex, but working with experienced contractors like Pacific Southern Development (PSD) can streamline approvals by up to 30%.
LADBS Fast Track Program
For office spaces, LADBS offers a Fast Track Tenant Improvement Program, which accelerates plan checks and reduces delays. This is especially valuable for businesses on tight timelines.