When it comes to creating the right space for your business, the options can feel overwhelming—especially when deciding between a ground-up build and a tenant improvement (TI). Both approaches offer unique advantages, but choosing the right path depends on your goals, budget, and timeline.
Let’s break down the difference and help you determine which one is the best fit for your business.
A ground-up build means starting with a blank slate. You’re constructing a new facility from the ground up—literally. This gives you full control over the design, layout, and functionality of the building.
Custom Design: Tailor the space to your exact needs and long-term vision.
Modern Systems: Install the latest in building technology, energy efficiency, and infrastructure.
Brand Presence: A unique, purpose-built space can make a powerful impression on clients and customers.
Longer Timeline: From permitting to construction, ground-up projects take time.
Higher Upfront Costs: The investment is typically higher, though it may pay off in long-term value.
More Involvement: You’ll be more involved in planning, decision-making, and coordination.
Tenant improvements involve renovating an existing space to meet your specific needs. This can include layout changes, updated finishes, new HVAC, lighting, plumbing, and more—all within the shell of an existing building.
Faster Timeline: Renovations typically take less time than building from scratch.
Lower Cost: Less material, shorter schedule, and fewer permits can make TI more budget friendly.
Location Flexibility: You can move into an area with established infrastructure and foot traffic.
Considerations:
Design Constraints: You may have to work around existing structure, walls, or mechanical systems.
Landlord Coordination: Improvements often require negotiation and approval from building ownership.
Limited Customization: There are usually more limitations in what can be changed.
When choosing between ground-up and TI, here are a few key questions to ask:
How much space do you need now—and in the future?
What’s your timeline for opening or expanding?
Are you prioritizing full customization or quicker occupancy?
What’s your long-term business plan for this location?
Is there existing real estate that checks most of your boxes?
Both ground-up builds and tenant improvements can be smart business moves—it all depends on your goals. At the end of the day, it’s about creating a space that supports your team, reflects your brand, and works for your budget.
Need help deciding what makes sense for your next project? Our team has experience in both, and we’re happy to walk you through your options.
Let’s build something great—together.