2025 BC
Tenant Improvement Guide

A tenant improvement (TI) is the process of configuring a commercial space to better suit a tenant's needs. It can include the design, construction and furnishing of the space u2014 everything from layout, walls and finishes to lighting, mechanical and electrical work, and the furniture, fixtures and equipment that make the space usable. Cutler has been involved in commercial tenant improvement projects across British Columbia since 2010, completing over 500 projects, and because we handle architecture and interiors in-house we can take a fit-out from feasibility and test-fit through permit and construction without handoffs between separate firms.

A tenant improvement allowance is money provided by a landlord to a tenant to help pay for the improvements to a leased space. The amount is negotiated as part of the lease and can cover some or all of the design and construction costs, depending on the deal. Because the allowance rarely maps exactly to a project's real scope, we help tenants understand the true cost of occupancy early u2014 before the lease is signed u2014 so the allowance, the budget and the design intent all line up.

Tenant improvement costs vary widely based on the scope of work, the condition of the space and the location within BC. Our 2025 BC Tenant Improvement Guide breaks costs into simple, mid-range and complex tiers, with figures that assume a full tenant improvement from a warm shell. A typical budget factors in construction materials; design and consulting (design consulting, architecture, engineering, project management and permits); furniture, fixtures and equipment; and AV, security and IT. All costs in the guide are industry-sourced and based on the average of projects across BC, so they're a broad planning benchmark rather than a fixed quote for a specific space.

A u201ccold shellu201d is a space with no furnishings, infrastructure, heat or plumbing u2014 essentially a bare structure. A u201cwarm shell,u201d by comparison, already has some base-building elements in place, such as heat and certain services. The distinction matters because it directly affects how much work u2014 and budget u2014 a tenant improvement requires. To keep comparisons consistent, the cost figures in our BC Tenant Improvement Guide all assume a full tenant improvement starting from a warm shell.

Permit timelines vary significantly between cities and municipalities in BC, and they're one of the biggest sources of schedule uncertainty on a tenant improvement. Our BC Tenant Improvement Guide compares permit times across municipalities alongside the cost data, so tenants can factor realistic approval timelines into their planning. Because we manage design, documentation and permitting in-house, we help clients anticipate these timelines early and keep a project moving from test-fit to construction.

Cutler is a Vancouver-based architecture and interior design firm specializing in commercial, retail and light-industrial projects, and we've been delivering tenant improvements across BC since 2010 u2014 over 500 projects to date. We help tenants assess a space before they sign a lease, then design and document the improvements needed to make it work for their business. Handling architecture and interiors together means fewer handoffs, better-coordinated trades and a fit-out that's delivered as designed. The data in our BC Tenant Improvement Guide comes from that hands-on experience, gathered by our team working closely with industry and project partners.