Commercial Tenant Improvement Costs in Los Angeles County:
Whether you are a landlord preparing a "white box" for a new tenant or a business owner envisioning your dream cafe in Pasadena, the same question always comes first: How much is this going to cost?
In 2025, the Los Angeles market presents a unique mix of opportunities and challenges. While material prices have stabilized somewhat compared to the post-pandemic spikes, labor shortages and increasingly complex city regulations (hello, Green Building Code!) continue to drive budgets upward.
At Razi Architects, we believe in Feasibility First. Before you sign a lease or break ground, you need a realistic financial roadmap. Here is what you need to know about Commercial Tenant Improvement (TI) costs in Los Angeles right now.
Average TI Costs per Square Foot in LA (2025 Estimates)
Costs can vary wildly based on finishes, but these ranges serve as a solid baseline for budgeting in the Greater Los Angeles area.
Standard Office Space: $200 – $400 per sq. ft.
What this gets you: New partition walls, standard lighting, carpet/vinyl flooring, and minor electrical/HVAC adjustments.
Retail & Restaurant: $150 – $450+ per sq. ft.
The variance: A simple boutique (low end) vs. a full commercial kitchen restaurant (high end) has a massive cost gap due to plumbing, grease traps, and venting requirements.
Medical & Dental: $300 – $500+ per sq. ft.
Why it’s higher: OSHPD requirements, specialized plumbing for dental chairs, lead-lined walls for X-rays, and heavy HVAC filtration drive these costs up.
Industrial / Warehouse: $100 – $250 per sq. ft.
Focus: Mostly lighting, power upgrades, and small office build-outs within the shell.
Hard Costs vs. Soft Costs: The "Hidden" 30%
A common mistake we see is clients budgeting only for construction (Hard Costs). In Los Angeles, you must account for "Soft Costs," which can eat up 20-30% of your total budget.
Hard Costs (70-80%): Everything physical—lumber, concrete, paint, labor, and mechanical systems.
Soft Costs (20-30%):
Architecture & Engineering: You cannot pull permits in LA without stamped Mechanical, Electrical, and Plumbing (MEP) drawings.
City Fees: Plan check fees, permit issuance fees, and school taxes.
Linkage Fees: LA’s Affordable Housing Linkage Fee can apply to new square footage, adding $3–$5+ per sq. ft. depending on your location.
Who Pays?
Understanding the Tenant Improvement Allowance (TIA)
If you are leasing space, you should be negotiating a Tenant Improvement Allowance. This is cash the landlord contributes toward your renovation.
Current Market Averages for TIA in Los Angeles:
Office: $60 – $80 per sq. ft. (Higher for long-term leases of 7-10 years)
Retail: $20 – $50 per sq. ft. (Often lower because retail fit-outs are so specific to the brand)
Medical: $50 – $100 per sq. ft. (Landlords know medical tenants stay for decades, so they often pay more upfront).
Pro Tip: If your landlord offers a "Turnkey Build-out" instead of cash, be careful. They will likely use the cheapest materials to save money. We always recommend taking the cash allowance and hiring your own architect to control the quality of your space.
The "Change of Use" Trap
This is the single biggest "deal-killer" in Los Angeles commercial real estate.
If you take a space that was previously a Retail Store and turn it into a Gym or Restaurant, you trigger a "Change of Use." This forces the building to meet current 2025 codes, which may require:
Seismic retrofitting (earthquake strengthening).
Adding new ADA-compliant bathrooms.
Adding parking spaces (which might be physically impossible).
Always check the Certificate of Occupancy before signing a lease.
How Long Does It Take? (LADBS Timelines)
Time is money. In Los Angeles, "fast" is relative.
Design & Engineering: 4–8 weeks.
Permitting (Standard TI): 4–6 months. Yes, really. LADBS is thorough. Plan checks often go through 2-3 rounds of corrections.
Construction: 3–6 months depending on size.
Total Timeline: Expect 9–12 months from hiring an architect to opening your doors. If you are told it can be done in 3 months, be very skeptical.
Conclusion: Don't Guess, Feasibility First.
Commercial renovations in Los Angeles are high-stakes investments. The difference between a profitable project and a money pit often comes down to the quality of your initial planning.
