Difference Between Ground-Up Construction And Tenant Improvements: A Comprehensive Overview

Ground Up Commercial Construction CA

Whether you are a developer, homeowner, or business owner, you may have heard of ground-up construction and tenant improvements. While there may be an apparent difference between these types of projects, each has nuances and requires different approaches during design and construction.

Suppose you are familiar with ground-up commercial construction but not tenant improvement construction in San Bernardino, CA, or vice versa. In that case, these projects may be your best bet regarding design flexibility, financing options, permits, and building features. Take the time to understand how they differ; it will help you plan your project correctly and avoid costly surprises.

  • Design Flexibility

In ground-up commercial construction projects, design is driven by building functional requirements, code standards, local regulations, budgetary constraints, and the owner’s vision. The design teams are free to work within these constraints, which gives freedom of design flexibility.

On the other hand, tenant improvement construction work on the limited parameter of construction. It works on redesigning the current structural, architectural, mechanical, electrical, and plumbing layouts, placing significant constraints on project design. It is needless to say that modifying the existing structure can add high cost and complexity to your project.

  • Financing Options

Tenant improvement construction is often easier to finance than ground-up construction. It usually costs less, which means that you may be able to pay at least partially in cash. Ground-up commercial construction costs more and does not offer the same time flexibility as improvement projects. For this reason, your options are limited to cash or a construction loan. The construction loan is challenging to qualify for, charges higher interest rates, and must be paid once construction is complete.

  • Permission and permits

Whether ground-up commercial construction or tenant improvement construction in San Bernardino, you cannot escape the necessity of permits and approvals. All demolition, construction, mechanical, electrical, and plumbing work will require prior approval in California.

If a retrofit project reveals previously unapproved work, it may be necessary to apply for retroactive approval, and the work may need to be brought up to current code standards.

  • Build Function

All construction projects impede the functioning of buildings. The ground-up construction project is not a big deal as the building will be vacant until construction is complete, all systems are commissioned, and final inspections are performed. On the other hand, most improvement projects take place in occupied buildings, and the resulting dysfunction must be predicted, planned, and controlled.

How does Lakeview construction help you?

Whether you’re planning a ground-up construction or tenant improvement construction project, it starts with meticulous planning and quality design. Our Lakeview construction team has years of experience working on many types of projects in California with successful completion on time. Contact us now. Offer a free consultation with an offer.