Retail vs. Office vs. Restaurant: How Tenant Improvement Needs Differ
When it comes to commercial tenant improvements (TIs), no two spaces are created equal. The requirements of a retail boutique are vastly different from a law office or a fast-casual restaurant—and understanding those differences is key to creating a functional, efficient, and code-compliant space. Whether you’re a property manager preparing a vanilla shell for a new tenant or a business owner customizing your space, knowing what each type of business demands can save you time, money, and a lot of headaches.
In this post, we’ll break down the core differences in tenant improvement needs between retail, office, and restaurant spaces, highlighting what makes each one unique—and what to plan for before your next remodel or buildout in the Phoenix metropolitan area.
Retail Spaces: Focus on Experience and Flexibility
Primary Goals:
Retail tenant improvements are all about presentation and flow. The space must be visually appealing and strategically laid out to encourage customer engagement, increase sales, and reflect the brand identity.
Key TI Considerations:
-
Open Floor Plan with Defined Zones: Retail layouts usually require an open area for merchandise display, with strategic placement of dressing rooms, cashier stations, or demo zones. Flexible wall systems or modular fixtures are often used to allow seasonal refreshes.
-
Lighting and Finishes: Retail spaces rely heavily on lighting—ambient, accent, and task lighting all play a role in enhancing product visibility. Finishes like polished concrete, laminate wood floors, and custom shelving are chosen for durability and aesthetics.
-
HVAC and Electrical Load: Compared to restaurants or office spaces, retail spaces typically require less plumbing but often need upgraded electrical capacity for lighting, digital signage, or point-of-sale systems.
-
ADA and Egress Compliance: Like all commercial spaces, retail shops must be accessible. That means appropriate aisle spacing, ADA-compliant dressing rooms, ramps where needed, and clear emergency exit paths.
Phoenix Market Tip:
In the hotter months, adequate air conditioning and ventilation are crucial in keeping retail customers comfortable. Energy-efficient HVAC systems can also reduce operating costs in the long term.
Office Spaces: Focus on Productivity and Functionality
Primary Goals:
Office tenant improvements prioritize workflow, privacy, and technology. Whether it’s a modern open-plan office or a traditional suite with private offices, the goal is to create a productive and comfortable environment for employees and clients alike.
Key TI Considerations:
-
Space Planning: Offices require a thoughtful mix of private spaces (like executive offices and meeting rooms) and communal areas (like workstations, break rooms, and collaboration zones). Sound attenuation is often key—especially in open offices.
-
IT & Data Infrastructure: Offices need robust data and telecom wiring. Planning for server rooms, cable management, and Wi-Fi access points early in the design phase is critical.
-
Lighting and Ergonomics: Unlike retail or restaurants, office lighting should be tuned for productivity—not ambiance. Bright, glare-free LED lighting, adjustable workstations, and ergonomic furniture can all boost comfort and performance.
-
Mechanical and Electrical Systems: Office buildings may need upgraded HVAC zones to accommodate different temperature preferences across rooms. Power outlets, charging stations, and conference room AV setups must be planned from the start.
-
Restrooms and Break Areas: While restaurants require intensive kitchen plumbing, offices may only need a breakroom kitchenette—but layout, compliance, and plumbing stub-outs still matter.
Phoenix Market Tip:
In rapidly growing cities like Chandler and Gilbert, tech and healthcare companies are driving demand for flexible office layouts. Modular wall systems and adaptable designs are a smart investment for landlords and tenants alike.
Restaurant Spaces: Focus on Code Compliance and Complex Systems
Primary Goals:
Restaurant tenant improvements are the most complex of the three. In addition to creating an inviting dining environment, restaurants must meet rigorous health, fire, and building code requirements—especially for kitchens and food handling areas.
Key TI Considerations:
-
Commercial Kitchens: These are the heart of any restaurant and typically require:
-
High-capacity electrical and gas connections
-
Ventilation hoods with fire suppression systems
-
Grease traps and floor drains
-
Durable finishes like quarry tile and FRP wall panels
-
-
Plumbing Load: Restaurants require extensive plumbing, including multiple handwashing stations, dishwashing areas, and beverage service lines—far beyond the needs of a retail or office space.
-
HVAC & Ventilation: Restaurants need separate HVAC zones for kitchens and dining areas. Heat and odor management is critical, especially when sharing a building with other tenants.
-
Building and Health Codes: The permitting process is more intensive for food-service spaces, involving plan reviews from the health department, fire marshal, and building officials.
-
Front-of-House Design: A restaurant’s dining area must align with its brand—casual, upscale, quick-serve, etc.—while still providing comfort and ADA accessibility. Flooring, lighting, acoustics, and furniture layout all contribute to the customer experience.
-
Fire Safety Systems: Fire-rated walls, sprinkler systems, and proper exhaust systems are must-haves. Grease ducts and hoods require careful engineering and inspection.
Phoenix Market Tip:
In the Phoenix Valley, restaurant conversions from retail shells are common, but it’s important to factor in the cost of retrofitting for plumbing and kitchen systems, which can be substantial.
Comparing TI Needs at a Glance
Feature |
Retail |
Office |
Restaurant |
|---|---|---|---|
| Space Layout | Open, flexible | Structured, private + communal | Segmented (kitchen vs dining) |
| Code Complexity | Moderate | Low to moderate | High |
| Mechanical Systems | Moderate HVAC, low plumbing | Standard HVAC, low plumbing | Intensive HVAC, plumbing, and grease control |
| Permitting Difficulty | Moderate | Low | High |
| Finish Requirements | Visual appeal, branded | Functional, professional | Durable, cleanable, themed |
| Project Timeline | Short to moderate | Short | Moderate to long |
| Tenant Cost Considerations | Displays, signage | Technology, furniture | Equipment, health code compliance |
Tips for Property Managers and Tenants
Regardless of space type, there are a few best practices that apply across the board:
- Start Early: Engage your contractor and architect as soon as possible to avoid delays during permitting and design.
- Understand the Lease Terms: Clarify who pays for what—some leases include TI allowances or require landlord approvals for specific modifications.
- Plan for Expansion: Even if you don’t need all the bells and whistles now, plan your layout so it’s easier to expand or reconfigure in the future.
- Communicate Constantly: A good contractor will keep you updated every step of the way. Make sure your goals and expectations are clear from day one.
- Choose the Right Partner: Working with a contractor who specializes in commercial TI work—like Emerald Inc.—can make all the difference.
Conclusion
Every tenant improvement project comes with its own set of challenges, but the type of business you’re remodeling for can dramatically change the scope, timeline, and cost of the work. By understanding how needs differ between retail, office, and restaurant spaces, you can plan smarter and build more effectively.
At Emerald Inc., we bring decades of experience specializing in commercial tenant improvement remodels throughout the Phoenix metro area. From permitting to finishes, our team knows how to tailor each space to meet your goals—and exceed expectations.
Ready to bring your space to life? Contact us today to start your tenant improvement project with confidence– Email us or call us at 480-832-9808. We look forward to assisting you in creating a beautiful, functional space within your budget and timeline!
