Commercial Construction
Fit-Out vs Tenant Improvement vs Renovation: What's the Difference?
July 17, 2025 · 5 min read
These three terms get used interchangeably in leasing conversations, but they describe different scopes with different funding and different contracts.
Fit-out
Building out a shell or previously unfinished space into usable premises: partitions, ceilings, MEP distribution, finishes and specialty systems. Category A fit-out delivers a base level; Category B delivers the occupier's specific design.
Tenant improvement
Work performed for a specific tenant in leased space, usually funded partially by a landlord allowance and defined by a work letter attached to the lease.
Renovation
Modifying existing finished space — refreshing finishes, reconfiguring layout, upgrading systems — often with the tenant in place and phased around operations.
Why the distinction matters
It determines who holds the contract, how the work is funded, what the landlord must approve, and how the permit is filed.
Frequently Asked Questions
Is a fit-out the same as a build-out?
In North American usage, effectively yes — 'build-out' is the more common term here, 'fit-out' more common internationally.
Planning a commercial interior project?
Transparent pricing, one contract, and a schedule we commit to — across New York, Texas and Florida.
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