Ten Things to Check Before You Sign a Commercial Lease

Ten things to check before signing a DFW commercial lease: shell condition, panel capacity, drains, accessibility, permitting authority, TI allowance.

i30 Builders··7 min read·Updated
Completed reception counter in a leased commercial suite.

Most of what makes a build-out expensive is decided before a contractor is hired, at the moment the lease is signed. These are the checks worth running while you still have leverage.

1. What the landlord is obliged to deliver

In writing, itemised. Not the label in the listing. Cold shell, grey shell, and white box mean different things to different landlords, and the gap between them is real money: bringing a cold dark shell up to a white box is $55 to $85/SF on i30 Builders' published card, before any of your own work starts.

2. Electrical panel location and capacity

Find the panel, read the rating, and count the spare ways. Upgrading service is one of the few corrections that can involve the utility and a multi-week lead time you cannot compress.

3. Whether HVAC is distributed or just present

A unit on the roof is not the same as conditioned air reaching every room you plan to build. Distribution is a substantial cost and it is easy to assume away on a walk-through.

4. Restroom accessibility as it stands today

Not whether restrooms exist. Whether they meet current accessibility requirements, because pulling a permit can end the grandfathering the building has enjoyed.

5. Where drains are, versus where you need them

New drains mean cutting slab. For any concept involving water, salon wash stations, restaurant kitchens, gym showers, this single item can separate a workable deal from an unworkable one.

6. Which authority permits the work

Usually the city building department. Not always: some jurisdictions permit through a Town, and downtown overlays add a design review step ahead of the building permit. Design to permit approval averages three to four weeks, and extra layers extend it.

7. How the TI allowance is actually paid

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Reimbursed against paid invoices and lien waivers, or advanced in draws? After the certificate of occupancy, or during? Is there a construction-management fee deducted? All negotiable before signature, none after.

8. Building rules on construction access

Freight elevator hours, permitted work windows, noise restrictions, and MEP shutdown procedures. In a multi-tenant building these can force after-hours work you had not budgeted for.

9. Signage rights and approval path

Frequently a separate permit with a separate queue, and sometimes subject to landlord and district approval on top. Businesses have opened on time and traded for weeks without signage because nobody started that process.

10. What a build actually costs in that space

Have it walked and priced before signature. It is a free hour that occasionally saves a lease you should not have signed.

Walk it before you sign

We look at the space with you, confirm what the shell includes, and price the finish-out in writing while you still have negotiating room. Call (469) 721-0146.

Frequently Asked Questions

Common questions about this topic from DFW tenants, landlords, and business owners.

What is the single most expensive thing to miss?

Shell condition. Taking a cold shell to a true white box is $55 to $85/SF on the published card, and who pays for it is decided by lease language rather than by the listing description.

Should I have a contractor walk the space before signing?

Yes. An agent can explain the lease; only the builder can tell you what finishing it costs, and that number decides whether the deal works. It takes about an hour and it is free.

Why does the electrical panel matter so much?

Because upgrading service can involve the utility, and that is a lead time you cannot compress by paying more. Finding it after signature turns a schedule into a hope.

Are drains really a deal-breaker?

For any water-based concept, sometimes yes. New drains mean cutting slab, and in some buildings the under-slab routing makes the location you want impractical at any sensible cost.

Can I negotiate how the allowance is paid?

Yes, and it is far easier before signature. Draw schedules, reimbursement timing, and construction-management fees are all commonly negotiated terms.

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i30 Builders

General contractor, Royse City, TX

Commercial tenant improvement, build-out and renovation, and residential outdoor living, fencing, additions and high-end kitchens and baths across Dallas-Fort Worth and East Texas.

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