A tenant improvement (TI), also called build-out, is construction work performed inside a commercial leased space to customize it for a specific tenant's intended use. TI projects can range from minor modifications (paint, flooring, light reconfiguration) to full cold-dark-shell buildouts where the tenant builds out an entirely empty space.
Most commercial leases include a tenant improvement allowance (TIA) — a dollar-per-square-foot contribution from the landlord toward TI costs (typical range: $15 to $80 per sqft, depending on market and lease terms). The tenant funds TI costs above the allowance. TI work spans many use types (office, restaurant, dental, medical, cannabis, pharmaceutical lab) and is the most common commercial construction work for small to mid GCs.