Commercial Tenant Build-Out 101 in Houston: Timeline, Permits, and Cost Traps Owners Miss
- Mark Johnson
- Oct 31
- 6 min read
Why tenant improvements rise or fall on planning
Whether you’re converting a raw shell into a café or refreshing an office to boost lease value, your build-out succeeds or fails in preconstruction—the quiet, paperwork-heavy part that determines everything else. When scope, code, and MEP (mechanical, electrical, plumbing) are aligned early, permits move faster, bids are comparable, and field work runs like a schedule—rather than a guessing game.
At BHC Contracting, we’ve delivered Houston build-outs across retail, office, medical-adjacent, and food service since 1989. Below is a straight-talk guide we share with landlords, tenants, and owner-operators before they sign the lease or lock their budget.
1) Start with use, occupancy, and code triggers
Houston build-outs are never one-size-fits-all. A coffee shop, med spa, and professional office might look similar on day one—but they trigger different occupancy rules, plumbing fixture counts, ventilation needs, and sometimes change-of-use reviews.
Key early calls:
Kitchen or food service? Plan for grease waste and interceptors, outside air for hoods, make-up air, and fire suppression tie-ins. Cooking method matters: a Type I hood (grease-producing) adds cost and coordination; a Type II hood (heat/steam) may be simpler but still requires clear routing.
Medical or wellness? Expect more dedicated electrical circuits, isolated grounding for certain equipment, added plumbing fixtures, and tighter accessibility clearances. Noise and privacy often push you toward upgraded acoustics and door hardware packages.
Assembly or retail? You’ll verify egress width, exit signage, emergency lighting levels, and sometimes restroom quantity based on occupant load. Reconfiguring walls can trigger sprinkler head relocations even if you keep the same use.
Outcome: We translate your business model into a code-aware scope so drawings pass plan review faster and you don’t get hit with field changes that shred your budget.
2) Drawings: the difference between “bid fodder” and a buildable set
The priciest plan set is the one you redraw three times. You need a coordinated package that aligns architecture with MEP and life safety. That doesn’t always mean months of design—but it does mean clarity.
A buildable set should address:
Architectural: space plan, partitions, doors, hardware, finishes, ADA clearances (maneuvering clearances at doors, restroom layouts, counter heights).
Mechanical: HVAC tonnage, duct routing, outside air, balance notes, and thermostat locations that actually work with your floor plan.
Electrical: panel schedules, circuiting, receptacle and equipment loads, lighting photometrics and controls to satisfy energy code.
Plumbing: fixture counts, waste/vent routing, water heater sizing and location, floor sinks or floor drains where applicable.
Fire/Life Safety: sprinkler head counts/relocations, alarm device locations, egress paths, and emergency lighting/exit signage.
Value move: We run a pre-bid site walk to verify ceiling plenum space, slab thickness (for restroom relocations), sprinkler coverage, existing panel capacity, and roof accessibility for RTUs—before anyone prices the job. That 60-minute look routinely saves weeks of revisions and a pile of change orders.
3) Permits and inspections: what Houston is looking for
Expect submittals, plan review comments, and staged inspections. Your schedule rises or falls on sequencing and documentation.
Common inspection holds:
Above-ceiling MEP: sealed duct joints, fire caulk at penetrations, proper supports for cable trays and conduits, and rated assemblies maintained where required.
Rough-in: plumbing pressure tests with slope confirmations; electrical rough checked for box fill, bonding, arc-fault/GFCI where applicable; mechanical rough for condensate routing and clearances.
Final: egress widths, ADA clearances, door pressures and closer speeds, exit sign/emergency light function, labeling of panels and devices, air balance where required.
Tip: Schedule ceiling close-in only after the above-ceiling inspection gets a green tag. It’s faster to wait a day than to re-open ceilings across 3,000 SF of finished grid.
4) Timeline: realistic milestones for a typical TI
Every space is unique, but most small-to-mid TI projects follow a rhythm. Here’s a no-drama cadence we use for Houston interiors:
Week 0–2: Precon + site validation
Scope alignment, early code screening, landlord work-letter review, budget targeting, long-lead item discovery.
Week 3–6: Drawings & permit submittal
Architect/engineers coordinate; we release long-lead fixtures, lighting, and any custom millwork early.
Week 7–10: Demo & rough MEP
Demising wall adjustments, slab trenching and backfill, duct/conduit runs, equipment setting.
Week 11–12: Inspections + close-in
Above-ceiling inspection, rough-in inspection, drywall hang and tape after tags, then ceiling grid.
Week 13–16: Finishes & punch
Ceilings, flooring, paint, millwork, door hardware, specialty items, final clean, and closeout docs.
What can add time: change of use, grease systems, electrical service upgrades, or structural work (e.g., new rooftop units or penetrations). We identify these up front so your lease and move-in dates are realistic.
5) Budget structure: where cost traps hide
Most “blown budgets” are predictable misses—not bad luck. Preconstruction is where we find and defuse them.
Common traps we fix in precon:
Undersized electrical service → Plan for a panel upgrade or new transformer coordination before you select that lighting showpiece.
HVAC tonnage mismatch → Comfort complaints become expensive change orders. We field-verify loads and outside air routes to match your layout.
Slab trenching for new restrooms → Saw-cutting, coring, spoils removal, and off-hours rules in certain buildings can spike. We plan trench routes to minimize cuts and coordinate shutdowns.
Grease waste or venting for food service → Missing this early rewrites entire drawings and upends your schedule.
Existing fire sprinkler coverage → Head relocations for new partitions must be counted and priced—never assumed.
Allowance strategy: We isolate unknowns (slab, utility tie-ins, RTU conditions, specialty hood duct paths) into realistic allowances and burn them down quickly. By week four or five, we convert variables into fixed numbers so you know where you stand.
6) Finish selections that pay back
Finishes determine day-two operating costs, maintenance burden, and tenant satisfaction—so they’re not just “pretty.”
Lighting: LED with sensible color temperature (often 3500K–4000K for retail/office) balances clarity with warmth. Layer task, ambient, and accent lighting; add controls that meet energy code without annoying your staff.
Flooring: LVT/LVP in high-traffic zones for durability and easy replacement; tile at entries and wet areas; carpet tile for conference rooms where acoustics matter.
Walls & acoustics: Insulate demising walls and treatment rooms; use higher NRC/CAC ceiling tiles where privacy matters; choose washable paints in service or break areas.
Millwork: Durable laminates for working surfaces; reserve real wood for accent moments where it won’t get abused.
Operations lens: We select materials that janitorial teams can maintain and tenants won’t fight—reducing callbacks, turnover costs, and warranty friction.
7) Landlord, tenant, and GC: who pays for what?
Every lease splits responsibilities differently. We read your work letter and convert legal language into scope and dollars.
Base building vs. tenant scope (e.g., rooftop units, main panels, core restrooms, exterior doors).
Allowance structures (timing, documentation requirements, and “use it or lose it” deadlines).
Contingency (what truly qualifies as unforeseen and how it’s approved).
We map that into a line-item budget so there are no “we thought you were paying for that” moments at week nine.
8) Why owners bring BHC in early
One point of accountability coordinating architecture and MEP trades.
Permitting know-how that reduces re-submittals and inspection delays.
Schedules tied to inspection gates, not wishful thinking.
Transparent line-item bids you can compare across finish levels and alternates.
In-house capabilities across construction, electrical, and plumbing, plus trusted partners for specialty systems (hoods, fire alarm, low-voltage).
Case snapshots (real Houston examples)
Coffee concept, 2,100 SF (shell to open): Grease interceptor coordination with landlord; Type I hood makeup air; efficient slab trenching for restroom relocation; four-week finish phase timed to training week.
Wellness suite, 3,400 SF (occupied building): Quiet HVAC design with added returns; isolated circuits and grounding for equipment; upgraded acoustics at treatment rooms; first-run inspection approvals saved a full week.
Professional office refresh, 5,800 SF (phased): Lighting redesign to lower watt density while improving visual comfort; LVT replacement by quadrant so the tenant stayed open; zero punch items on life-safety.
FAQs
Do I need a full architect for a simple office refresh?
Often, yes—at least for code-compliant plans and permitting. We can bundle design-assist or refer architects that fit your scope and budget, then coordinate MEP so drawings are buildable.
Can we build while permits are pending?
We don’t recommend it. Demolition may be allowed in some cases, but starting MEP without permits risks stop-work orders and rework. We protect your schedule with the right sequence.
How fixed is the budget?
We control unknowns early, document decisions with drawings, and issue change orders only when scope truly changes. No games, no surprises.
What if my landlord requires approved contractors?
We work within preferred-vendor lists all the time, aligning insurance, safety, and site rules while preserving cost and schedule goals.
Get a no-pressure preconstruction consult
Bring us your lease draft, a napkin sketch, or a full program. We’ll map code triggers, outline a realistic timeline, and give you a line-item budget you can take to the bank.
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