Updated September 2026 · By Tom Koelzer and Dave Ven Horst, co-founders of Tenant Advisors
A successful office setup is decided in the lease. The terms that matter most are who manages the build-out, when rent starts, whether you get early access for cabling and furniture, what the tenant improvement allowance can pay for, and what you owe when you leave your old space. Negotiate these before signing. Afterward, you have little leverage.
Which lease terms matter most for a new office setup?
| Lease term | What to negotiate | Why it matters |
|---|---|---|
| Build-out management | Who controls construction, plan approval, and contractor selection | Controls cost, quality, and schedule |
| Rent commencement | Rent starts on substantial completion, not a fixed calendar date | Protects you if construction runs late |
| Early access | Rent-free access a few weeks before commencement | Time for cabling, AV, and furniture installation |
| Allowance use | Allowance can cover cabling, furniture, signage, and moving; unused balance applies to rent | Stretches the allowance to real move costs |
| Delivery delays | Rent credits, or a termination right if delivery is very late | Avoids paying for two spaces at once |
| Exit from old space | Restoration obligations, holdover rent, and notice dates in your current lease | Prevents surprise costs on the way out |
Who should manage the build-out?
There are two common structures. In a turnkey deal, the landlord builds the space to an agreed plan at its own cost, so the tenant avoids cost overruns. Turnkey works best when your plans are fully defined before signing. In an allowance deal, the landlord contributes a fixed amount per square foot and the tenant manages or approves the work. That gives you more control, but costs above the allowance are yours. Either way, get a construction estimate based on your test fit before you agree to the number. See our tenant improvement allowance guide.
When should rent start on a new office?
Tie rent commencement to substantial completion of your space, not to a fixed date. If permits or construction run late, a fixed-date lease can have you paying rent on space you cannot use while you also pay for your current office. Pair this with an outside delivery date and meaningful remedies if the landlord misses it.
What can the tenant improvement allowance pay for?
By default, many leases limit the allowance to hard construction costs. Negotiate for it to also cover architectural and engineering fees, voice and data cabling, furniture, signage, and moving expenses, and for any unused balance to be applied as a rent credit. That flexibility often matters as much as the headline allowance number.
What do you owe when leaving your old office?
Read your current lease before setting a move date. Restoration clauses can require you to remove cabling, walls, or other improvements. Holdover clauses often set rent well above your current rate if you stay past expiration, even by a few days. And notice provisions may require written notice months in advance. A lease audit surfaces these obligations early.
Who else should be on the move team?
A well-run setup typically involves a project manager, space planner or architect, real estate attorney, furniture vendor, IT and telecom provider, and mover, coordinated around the lease schedule. Our office relocation and site selection service coordinates this team from market survey through move-in. For the day-to-day checklist, see our office relocation checklist.
Frequently Asked Questions
How long does an office build-out take?
For a typical suburban office, plan on three to six months after the lease is signed, including design, permits, and construction. Larger or more complex projects take longer.
What is a turnkey build-out?
The landlord delivers the finished space to an agreed plan at its own cost, so the tenant is protected from cost overruns. It works best when plans are fully defined before the lease is signed.
What is a holdover clause?
It sets the rent you pay if you stay in your space past the lease expiration, often well above your current rent. Check it before you set your move date.
Plan Your Move With a Tenant-Only Advisor
We negotiate the lease terms that make a new office come together on time and on budget. We represent tenants only, and the landlord pays our fee. Schedule a strategy call or call (847) 778-0296.
About the authors: Tom Koelzer and Dave Ven Horst co-founded Tenant Advisors, Inc. in 2004 after nearly two decades each as First Vice Presidents at a national commercial real estate firm. The firm represents office tenants only, never landlords, and has negotiated 2,000+ office leases across Chicago and the suburbs.