Common Questions About Commercial Build-Outs and Tenant Improvements in Franklin

Who pays for the build-out — me or the landlord?

It depends on what you negotiate. Landlords commonly offer a tenant improvement allowance, a set dollar amount (often quoted per square foot) they'll contribute toward the work. Anything beyond that allowance typically comes out of your pocket, so the size of the allowance is one of the most important lease terms to negotiate.

What is a tenant improvement allowance?

A tenant improvement allowance is the amount a landlord agrees to contribute toward customizing your space, usually expressed as a per-square-foot figure. If you're leasing 2,000 square feet with a $30 per square foot allowance, that's $60,000 toward your build-out. Understanding exactly what the allowance covers — and what it doesn't — prevents surprises later.

What does "turnkey" mean in a lease?

A turnkey build-out means the landlord delivers the space fully finished to agreed specifications, and you walk in ready to operate. With turnkey arrangements, the landlord manages the construction and absorbs cost overruns, but you typically have less control over finishes and timing. It's a popular option for busy professionals who'd rather not manage a project.

How long does a commercial build-out take in Franklin?

Timelines vary widely based on scope, but most build-outs run anywhere from a few weeks for cosmetic work to several months for major construction. In Franklin, the permitting and inspection process through the City of Franklin or Williamson County adds time you'll want to plan for. We always recommend building a schedule buffer, because permit reviews and contractor availability can shift.

Do I need permits for a build-out in Franklin?

Most build-outs that involve structural changes, electrical, plumbing, or mechanical work require permits through the City of Franklin's building department. Even some cosmetic projects may trigger requirements depending on occupancy type and code. You can review building and permitting requirements through the City of Franklin's official website. When in doubt, confirm before any work begins.

What's the difference between a shell space and a finished space?

A shell space is delivered with the basic structure — exterior walls, roof, and sometimes rough utilities — but no interior finishes. A finished or second-generation space already has interiors from a previous tenant. Shell spaces give you full design freedom but require more build-out investment, while second-generation spaces can save money if the existing layout fits your needs.

What is "second-generation space" and why does it matter?

Second-generation space is a commercial unit that was previously occupied and built out by another tenant. If a former restaurant space already has plumbing, grease traps, and a hood system, a new restaurant tenant can save significantly by reusing that infrastructure. We often steer clients toward second-gen spaces when the prior use closely matches their business.

How do I budget for a build-out?

Start with the allowance the landlord offers, then get bids from licensed contractors for your specific scope. Beyond construction, budget for design, permits, signage, furniture, fixtures, and equipment — these "soft costs" add up and aren't always covered by an allowance. Building in a contingency of 10 to 15 percent helps absorb the unexpected.

Can I negotiate the build-out terms?

Yes — build-out terms are some of the most negotiable parts of a commercial lease. The allowance amount, who controls the construction, free rent during build-out, and ownership of improvements at lease end are all on the table. Our team helps Franklin tenants and landlords negotiate these terms so the responsibilities and costs are clear before anyone signs.

What happens to my improvements when the lease ends?

In most cases, permanent improvements — walls, built-in fixtures, flooring — become the landlord's property when the lease ends. Removable items like furniture and certain equipment usually stay yours. Your lease should spell out exactly what you can take, what you must leave, and whether you're responsible for restoring the space to its original condition.

Should I hire my own contractor or use the landlord's?

It depends on the lease structure. With a turnkey deal, the landlord typically handles the contractor. With an allowance arrangement, you often have the freedom to hire your own licensed contractor, which gives you more control over quality and cost. Always confirm whether the landlord requires approval of your contractor selection.

How do I avoid build-out delays?

Lock down your scope early, choose an experienced contractor familiar with Franklin's permitting process, and submit permit applications as soon as plans are ready. Delays most often come from late design decisions, change orders mid-project, and permit backlogs. Clear communication between you, your landlord, and your contractor keeps the project moving.

Where can Redbird help with a commercial build-out?

Our work at Redbird focuses on commercial real estate throughout Franklin and the surrounding Williamson County area — including landlord and tenant representation, site selection, and lease negotiation. We help clients understand build-out terms before they sign, so the space they lease can actually become the space their business needs. If you're evaluating a commercial space this summer, we're glad to walk through the details with you.