How much TI for an existing building that requires significant remodelling ?
I am looking at taking over a large (10,000 sq ft) restaurant that requires significant investment. The building was flooded it appears, and all the dry wall is cut in half. All the flooring is ripped out. So essentially, it needs, more or less a full build out. 

Are there any industry benchmarks for TI for existing space that I should be familiar with ?
[{"id": "gwot2bd", "text": "It will vary wildly depending on the market you\u2019re in, the class of building, the rental rate, and other deal points (lease term, free rent, NNN vs gross lease, etc.). It will also vary depending on your track record as an operator and your financial strength, as well as the particular landlord you\u2019re working with.\n\nWithout having any of the important details, I would think asking for the cost to replace damaged drywall and some basic amount for flooring allowance is reasonable, unless they are asking a bargain basement price in the first place, in which I\u2019d recommend requesting some sort of rent abatement program to help initial costs.", "replies": [], "depth": 1}, {"id": "gwotwwp", "text": "Get 3 bids from a GC.  Add them all up.  Divide by 3.\n\nDouble that price.\n\nAdd 30%.", "replies": [], "depth": 1}, {"id": "gwp00gz", "text": "Since it\u2019s basically first generation TI now, I\u2019d say maybe around $100 per square foot assuming you need flooring, paint, carpet, drywall, plumbing, etc. could be more or less depending on the finishes and quality you will be aiming for.   If you had bare bones abd just needed finishing would Likely be around $40-50 psf.", "replies": [{"id": "gwp09o4", "text": "Wow. Thank You. \n\nIs that common ? A $500,000 TI for a 10,000 sq ft space ?", "replies": [{"id": "gwp13wk", "text": "You been to Home Depot lately? A 2x4 is $7. You have all the permits and grease traps already? Is the bathroom ada compliant? Do you need permits, do you have an expeditor? \n\nYou want 6 months of free rent at least and about 300k or more in ti for the landlord to fix up his own space. Or maybe you are a sucker and will use your own money to fix it for him.", "replies": [{"id": "gwp1zxr", "text": "Damnnnn !!! I am a sucker, that\u2019s why I\u2019m here asking for help.", "replies": [], "depth": 4}], "depth": 3}, {"id": "gwp4n18", "text": "Sure. If it were office space and you needed offices built and glass with nice finishes and carpet you can easily get over $50 psf. Since it\u2019s a restaurant you need running water which is more expensive and likely exhaust systems for the kitchen. It Can get pricey.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gwpeyuj", "text": "Is it a true TI? Try to set a max price with your tennant and tell them you\u2019ll amortize the rest into the lease.", "replies": [], "depth": 1}, {"id": "gwpyn4q", "text": "When you are asking about tenant improvement? Do you mean tenant improvement allowances paid by the landlord?\n\nIn some markets the LL will pay into a tenant improvement for a long term lease. This is an inducement to get the space occupied. Will vary from market to market, asset class to asset class, use to use etc.\n\nThe landlord will also usually be responsible for landlords work, which is meant to cure any deficiencies to make the space a normal shell condition if it is not in that condition already. Maybe new paint, maybe some demo, not the new build out for the tenant.\n\nIf you are taking over an existing lease, you probably aren't getting money out of the LL, but if this is a new lease, they should normally be cleaning the space up (demo carpets etc) \n\nDid you already sign the lease?", "replies": [{"id": "gwq2a32", "text": "Yes, that\u2019s what I mean. I thought TI was a universal term, not limited to certain geographies.", "replies": [{"id": "gwqzakk", "text": "It is the same everywhere but the 'tenant improvement\" and the \"tenant improvement allowance\" are different. On certain leases a TI (allowance) will not be offered by the landlord to the tenant, instead the tenant will need to complete all the \"tenant improvement\"build out on their own without $ from the landlord.\n\nSome markets are so hot that landlords don't need to offer them.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gwq75mv", "text": "In Atlanta restaurant TI assuming white box (which you are not getting) in a nice area is $175 psf min. This is for Class A location and product.", "replies": [{"id": "gwq7cp8", "text": "What lease term would that be approximately ? 5/10/15 ?", "replies": [{"id": "gwquvlq", "text": "5-10 years", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gwsadom", "text": "As other folks have said here, it really depends on where you're building and how much you're building out.   \n\n\nThe advice I'd share is it do as little TI as possible before you have a tenant. Get to the point of a \"vanilla shell\" and stops there. Whatever restaurant tenant you end up finding may likely ask you to rip out all the carpet you installed, paint over all the paint you paid to put on the walls, and completely change the layout. \n\nGet the space to the point at which it can be shown to tenants without an instant rejection.   \n\n\nFYI, this leaves room for additional and often useful negotiation. You're going to find that TI's are expensive. negotiating for a tenant to do part of thier own build-out is money in your pocket and improvements you get to keep if the restaurant fails in one year.", "replies": [], "depth": 1}, {"id": "gwxe4fw", "text": "If the space is in a flood prone area, maybe you should reconsider.  Your new TI could be destroyed on day 1 and even with flood insurance, are you willing to expose yourself to lost in revenue due to flooding?", "replies": [], "depth": 1}]