Problems
What will AGI do for Tenant Improvement Cost Overruns?
Commercial real estate landlords and incoming tenants face continuous budget blowouts during lease build-outs. Tenant Improvement allowances are typically negotiated using static, historical per-square-foot estimates months before actual construction bids are solicited. By the time design development finishes and contractors price the scope, fluctuations in material costs, labor shortages, and unforeseen site conditions routinely push the project far beyond the agreed-upon financial envelope.