August 28, 2025
Tenant Improvements in 2025: Where TI Dollars Go
TI budgets are shaped by asset class and MEP intensity. Prime office and necessity‑retail are active; labs see smaller deals while biomanufacturing spend persists.
Where TI budgets are going
- Office: Leasing is stabilizing in prime assets; higher fit‑out costs keep many tenants renewing rather than relocating (CBRE, Jul 2025).
- Retail: Tight vacancies and limited new supply support rent growth (CBRE IM, H1 2025).
- Labs: Oversupply persists; deal sizes skew smaller while biomanufacturing investment continues (JLL Life Sciences 2025; JLL News, Jun 2025).
Budget drivers
- MEP intensity (air changes, exhaust, power density).
- Scope creep late in design—use alternates and allowances.
- Labor rates remain elevated (BLS construction AHE Jul 2025).
What to do
- Issue assembly‑level ROMs in programming; update at DD with quotes.
- Bid with unit prices for likely adds (doors/hardware, branch circuits, ACT grid).