In theory, tenant improvements should be simple, but in reality, they’re anything but straightforward. With traditional construction, delays can push back move-in dates, material waste and extra labor can blow up costs, and on-site noise can make it difficult for employees to focus.
The good news is that modular construction can completely eliminate these problems. It does this by shifting most of the work off-site, cutting unnecessary costs, reducing waste, and shortening overall project timelines.
In this article, we’ll cover some of the main issues with traditional construction for commercial tenant improvements, as well as explain how modular is the superior choice.
The Problem with Traditional Commercial Tenant Improvements
As we’ve said already, making leasehold improvements isn’t always as simple as it sounds. Traditional construction typically comes with delays, extra costs, and loud noises that can be disruptive to other tenants.
Long timelines are probably the biggest issue with traditional methods. And worse, there is usually some degree of uncertainty regarding when the project will be done, especially if there are labor or supply chain issues. Businesses often find themselves paying rent on a space they can’t use while waiting for construction to finish.
Then there’s the high cost. Material waste, extra labor hours, change orders, and other unexpected expenses can quickly increase the total price paid. What starts as a straightforward renovation can spiral into an expensive and time-consuming process.
Another major drawback is, of course, the disruptions they can cause to other tenants. This comes not only in the form of noise, but also dust, yellow tape, and restricted access. As you might expect, In industries like retail or hospitality, this can lead to loss of sales and damage the customer experience.
Finally, traditional tenant improvements in general lack flexibility. In other words, once they are built, the walls, partitions, or other infrastructure is permanent and difficult to adjust. If a business needs to expand, reorganize layouts, or relocate altogether, making further changes means another expensive renovation.
All these issues frequently leave tenants and landlords frustrated.
How Modular Construction Overcomes These Issues
Fortunately, with modular tenant improvements, most of the above issues can be avoided. Much of the benefits happen simply because the construction process occurs off site. Prefabricated “modules” or parts are built in a factory and then shipped and installed in a fraction of the time.
1. Shorter Timelines = Faster Completion
As we alluded to earlier, traditional tenant improvements can take a long time, sometimes even many months. This leaves landlords and businesses paying rent on space that is unusable or incomplete. Modular construction puts project timelines back on track; it’s much more predictable and quick because manufacturing can happen at the same time as site preparation. And once the prefabricated units are ready, they can be installed in days, not weeks.
2. Lower Costs
Modular construction helps businesses save money in several ways. First of all, it lowers labor costs by sourcing most of the work to a factory, and as a result, few on-site workers are needed for the installation itself.
Second, material waste is reduced significantly. As you might expect, in traditional construction, leftover materials that go unused are discarded, which adds unnecessary costs. Factories that create modular structures, on the other hand, optimize the use of materials, and this controlled production makes budgeting far more predictable.
Finally, unexpected expenses are rare. With traditional upgrades, last-minute changes, weather issues, or other miscalculations will often result in higher costs.
3. Fewer Business Disruptions
Because most of the work happens off-site, businesses experience little-to-no disruptions. There is less dust, noise, and debris, which means employees can continue their work.
4. Flexibility
Finally, unlike traditional renovations, modular improvements are flexible and adaptable. If you need to change the layouts, our can team come adjust them for you. We can even help you expand, downsize, or relocate the building altogether if need be.
Industries That Benefit Most from Modular Tenant Improvements
Many landlords and businesses rely on commercial tenant improvements to improve spaces and make them attractive for tenants. Here are a few common improvements we see at Allied Modular:
- Office Space: Private administrative offices, conference rooms, break rooms, and more.
- Retail & Customer Service: Checkout areas, service counters, fitting rooms, and other retail applications.
- Industrial & Warehouses: Modular offices, mezzanines, equipment platforms, and more.
The Bottom Line
In short, traditional tenant improvements are slow, expensive, and disruptive. Modular construction removes such issues, and provides many other benefits, such as lower costs, and allows for future flexibility. If you need a faster, smarter way to create commercial tenant improvements, modular is the clear choice.
Interested in upgrading your space? Reach out to the experts at Allied Modular for a quote on new tenant improvements:
