1. The starting condition of the space
A cold shell (bare structure, no ceilings or HVAC distribution, utilities stubbed in) needs almost everything built. A warm shell or second-generation suite may already have restrooms, ceilings, HVAC distribution and lighting you can reuse. Second-generation space can save a lot, but only if the existing systems fit your layout and use. Read the landlord's work letter closely to see what is delivered and what is your cost.
2. Plumbing, especially anything below the slab
New sinks, exam-room handwashing sinks, dental operatories, restrooms and kitchen lines usually mean cutting and trenching the slab to reach the sewer. Plumbing far from the existing stacks, a grease interceptor for food service, or extra restrooms required by the occupant load can be some of the biggest single line items in a TI.
3. HVAC capacity and zoning
A new room layout often needs more zones, more supply and return runs or more cooling, especially in Las Vegas summers and in spaces with equipment, servers or lots of people. If the existing rooftop units are old or undersized, replacing them adds equipment cost, crane time and lead time.
4. Electrical service and lighting
Medical equipment, commercial kitchens, server rooms and EV chargers can exceed the existing panel or service. Upgrading service takes coordination with the utility and can involve long-lead switchgear. Lighting and controls also have to meet the energy code. Clark County's TI guide, for example, requires interior lighting and other energy-code calculations on the plans.
5. Fire sprinklers, fire alarm and life safety
New walls usually mean relocating or adding sprinkler heads, and a change in use can mean alarm upgrades. Many landlords require their own fire-alarm vendor. Those items often go through separate deferred-submittal permits, which affects schedule as well as cost.
6. Accessibility
Remodeling an existing space can trigger accessibility upgrades to the route to the space, restrooms, doors and counters. Restrooms that were fine for the last tenant may not comply once the space is altered. These items are required, not optional, so they should be in the first budget.
7. Finishes, glass, millwork and specialty items
Frameless glass partitions, custom millwork, specialty flooring, exposed ceilings, feature lighting and AV infrastructure are where design choices move the budget most. You control these items, so they are the best place to value-engineer if the number comes in high. See our office build-outs page for typical office scopes.
8. Schedule, access and working hours
After-hours work in occupied buildings, phased work around a business that stays open, restricted delivery windows and tight opening dates all add labor cost. A realistic schedule set early is usually cheaper than an accelerated one later.
9. Permits, fees and approvals
Plan-review and permit fees, utility and health-district fees, and design fees for architects and engineers are real project costs. So is time: every month of review is a month of rent with no revenue. Our permit timeline guide shows published review times for each jurisdiction.
How to get a reliable number early
Bring in a contractor before the lease is signed or the design is final. A walk-through and a review of the work letter and preliminary drawings can identify the expensive items above while you can still negotiate the TI allowance or adjust the design. That is what our preconstruction and estimating service is for. We build bids from detailed takeoffs and real subcontractor pricing, not from a square-foot guess.
Sources
- Clark County BPG023: Tenant Improvements
- Southern Nevada Health District plan review
- City of Las Vegas Building & Safety
Last reviewed 2026-10-24. Rules, fees and review times change, so confirm current requirements with the agency before you rely on them. This article is general information, not legal advice.