Tenant finish-out and renovation in Dallas–Fort Worth

Finishing out shell space

A shell suite is the empty space inside a building: a floor slab, exterior walls, and utilities brought to the suite. Landlords describe it in different ways, such as cold dark shell, warm shell, or vanilla shell, and the terms do not mean the same thing in every lease. The work letter is what says what is actually there.

The finish-out is everything built inside it: walls, doors, plumbing, power and data, heating and cooling distribution, ceilings, lighting, fire sprinkler changes, cabinets, and finishes. For a practice, that also means the slab is cut for exam room and operatory plumbing, and special rooms such as X-ray, sterilization, or surgery get their own requirements. Starting from shell gives you the most freedom in the layout and the most work to build.

Second-generation space

Second-generation space was built out for an earlier tenant. Reusing walls, plumbing, and ductwork can save time and money when the old layout fits the new practice. When it does not, demolition and hidden conditions can make it cost as much as a shell, or more.

Before you sign, it pays to know what is behind the walls and above the ceiling: where the plumbing runs, the age and size of the heating and cooling units, what the electrical panel can carry, and whether the restrooms and entrances meet current accessibility standards. Our article on second-generation medical space versus shell compares the two. Two more walk through conversions: second-generation office space into a dental office and a retail space into a veterinary clinic.

Landlord work letters and TI allowances

The work letter is the part of the lease that divides the work between landlord and tenant. The tenant improvement allowance is the money the landlord contributes toward your finish-out. Settle these points before you sign:

• What the landlord delivers. Restrooms, the heating and cooling unit, the electrical service, the sprinkler main, and the demising walls are sometimes landlord work and sometimes not.
• What the allowance covers. Some allowances pay only for construction. Others also cover design fees, permits, cabling, or signage.
• When it is paid. Many landlords pay at completion, against lien waivers and the certificate of occupancy, so you may need to carry the cost until then.
• Building rules. Approved contractors, insurance, after-hours work, roof penetrations by the landlord's roofer, and the landlord's review of your drawings.

We prepare a first budget at no charge that shows how far the allowance will go. It is an early range, not an estimate. A detailed estimate comes later, priced from the drawings. Our guide on what to ask before signing a medical lease has more.

Power, air, water, and sewer capacity

A practice uses far more of the building's systems than an office of the same size. The questions that most often change the budget are about capacity:

• Electrical service. Whether the suite's service can carry imaging, sterilizers, compressors, and lab equipment, or a larger service is needed.
• Heating and cooling. Whether the existing units are large enough and in good condition, and whether exam and procedure rooms can get the airflow they need.
• Plumbing. Where the sewer line sits and how deep, because every sink and operatory has to drain to it. On an upper floor, lines run through cored holes into the ceiling of the space below, with the landlord's approval and the neighbor's access.
• Fire sprinklers and alarms. New walls and rooms usually mean moving heads and adding devices.

We will walk the space with you before you sign the lease and tell you what to check. Imaging needs the most from a building; see building out an imaging suite.

Renovations and expansions of open practices

Renovating or expanding a practice that is still seeing patients is a scheduling problem as much as a construction problem. Where feasible, we divide the work into phases so part of the office stays in service. The work area is sealed off to keep dust and noise out of patient areas, noisy work and utility shutdowns are scheduled outside clinic hours, and exits are kept open. Phasing and after-hours work add cost and time. The tradeoff is staying open. Our article on renovating while you stay open covers phasing, infection control, and exits.

An expansion into the suite next door adds its own steps: taking down a demising wall, tying the new space into your existing systems or giving it its own, and keeping the landlord and neighbors informed. We plan the phases with you before the drawings are finished, because phasing can change the design.

Permits, accessibility, and inspections

A finish-out or renovation needs a city building permit, and review usually takes a few weeks, sometimes longer. Texas adds a separate accessibility review for most commercial projects, registered with the Texas Department of Licensing and Regulation, then reviewed and inspected by a registered accessibility specialist. Work in an existing building can also require upgrades outside your suite, such as the restrooms or the route from the parking lot.

Inspections follow the work: plumbing under the slab before the concrete goes back, framing and rough-in before drywall, above the ceiling before it is closed, then the final building and fire inspections that lead to the certificate of occupancy. Our guide to medical office building permits in DFW covers the path in each city.

S&I also builds new medical and commercial buildings from the ground up. See new building construction.