Commercial tenant improvement (TI) buildout cost in Dallas-Fort Worth ranges from $40 per square foot for a basic office refresh to $300+ per square foot for a full-service restaurant or medical clinic. TI construction is one of the most complex project types in commercial real estate — it involves negotiating allowances with landlords, coordinating with building management, and hitting hard move-in deadlines. Here is what TI actually costs across every major use type in DFW.
DFW Commercial TI Costs by Use Type
| Use Type | DFW TI Cost / sq ft | Key Cost Drivers |
|---|---|---|
| Office — vanilla shell | $40 - $75 | Demising walls, drop ceiling, lighting, basic HVAC, carpet, paint |
| Office — mid-range | $75 - $120 | Conference rooms, glass fronts, upgraded finishes, custom millwork reception |
| Retail — basic | $60 - $100 | Storefront, lighting, flooring, dressing rooms if applicable |
| Retail — experiential | $100 - $160 | Custom fixtures, feature walls, premium flooring, complex lighting |
| Restaurant — fast casual | $120 - $180 | Commercial kitchen, grease trap, Type II hood, dining area finish |
| Restaurant — full service | $180 - $280 | Type I hood, full commercial kitchen, bar, dining, restrooms |
| Medical / dental | $150 - $300+ | Plumbing for each operatory, x-ray shielding, specialized HVAC, casework |
| Fitness / gym | $80 - $150 | Rubber flooring, HVAC oversizing, shower facilities, electrical for equipment |
Understanding TI Allowances in DFW Leases
In a commercial lease, the landlord typically provides a tenant improvement allowance (TIA) — a per-square-foot dollar amount toward the buildout. In DFW's current market, TI allowances range from $20-$60/sq ft for office space and $30-$80/sq ft for retail, depending on lease term, creditworthiness of the tenant, and how badly the landlord wants the tenant. If your buildout costs $100/sq ft and the landlord offers $50/sq ft TIA, you fund the $50/sq ft gap. TI allowances are typically disbursed against invoices and lien waivers after construction milestones.
What Is and Is Not Covered in a TI Buildout
- →Typically covered by TI: Demising walls and framing, HVAC distribution (not the main unit on the roof), electrical within the suite, plumbing within the suite, flooring, ceilings, lighting, paint, millwork, and storefront if leased as a shell.
- →Typically NOT covered by TI: Furniture, fixtures and equipment (FF&E), signage, security systems, and tenant-owned equipment like kitchen appliances in a restaurant.
- →Grey area items: Rooftop HVAC units (often landlord responsibility for replacement, tenant for maintenance), generator and UPS systems, specialized exhaust (Type I hoods for restaurants are sometimes partially landlord-funded in food-and-beverage-focused centers).
- →Always confirm in writing: What constitutes building standard vs. above-standard. Landlords typically require above-standard items to use TI allowance at a higher cap rate or pay out of pocket.
DFW Commercial TI Timeline: What to Expect
- 1Lease execution and landlord approval: Most DFW leases require landlord approval of plans before construction begins. Build in 2-4 weeks for plan review.
- 2Permit submittal: DFW cities require commercial building permits for any TI that involves structural, electrical, plumbing, or mechanical work. Plan review takes 3-8 weeks for most DFW cities. Dallas and Fort Worth have expedited review programs for commercial projects.
- 3Construction: Duration varies by scope. A basic office TI of 3,000 sq ft runs 6-10 weeks. A restaurant buildout of the same size runs 12-20 weeks. Medical/dental clinics run 16-28 weeks.
- 4Certificate of Occupancy: Required before opening. CO inspection is scheduled after final inspection sign-offs on all trades.
Restaurant TI Buildout in DFW: The High-Cost Category
Restaurant TI in DFW is the most expensive and complex commercial buildout category. The primary drivers are: commercial kitchen equipment ($40,000-$150,000+ depending on concept), Type I or Type II exhaust hood and fire suppression ($20,000-$60,000), grease trap installation (required in DFW — $8,000-$20,000 depending on capacity and location), and the plumbing density required for a commercial kitchen (3-5x the plumbing runs of an office of the same size). DFW cities have increasingly strict grease interceptor requirements — confirm with the city utilities department before finalizing your kitchen design.
Medical and Dental TI Buildout in DFW
Medical and dental buildouts are the highest-cost TI category in DFW. Every dental operatory requires a dedicated wet plumbing station — typically $3,000-$5,000 in plumbing alone per operatory. X-ray rooms require lead shielding in walls and the ceiling (in multi-story buildings). HVAC requirements for procedure rooms are more stringent. A 10-operatory dental office in DFW costs $1.5M-$2.5M in TI construction. A medical clinic with exam rooms runs $200-$350/sq ft.
Zencore Homes delivers commercial TI buildouts across DFW — office, retail, restaurant, and medical. We manage the permit, the subs, and the landlord coordination.
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