A commercial unit can look perfect during the showing. The rent is within range, the address feels right, the storefront has visibility, and the landlord wants to move quickly.
But if the business needs renovation before opening, the real question is not only “Can we afford this lease?” It is also: “Can this space actually be renovated into the business we want to open, within the time and budget we have?”
Many expensive surprises start before construction begins. The fixturing period is too short. The landlord needs drawings before any work can start. The city may need to review the scope. The existing electrical service is not enough for equipment. The ceiling looks finished, but the HVAC, sprinklers and lighting all need coordination. A restaurant looks good in the dining area, but the kitchen cannot support the concept without major mechanical work.
This article is not legal advice or lease negotiation advice. Lease terms should be reviewed with a commercial broker or lawyer. The focus here is the renovation side: what to check before signing so the lease does not turn into a construction problem.
Start with the opening date, then work backward
Before signing, write down the date you want to open and work backward. Be honest about every step between possession and first customer.
• When do you actually get keys and full access to the unit?
• How long is the fixturing or renovation period?
• Does the landlord need to approve drawings, finishes, insurance and contractor information before work starts?
• Could the scope require city permits, trade permits or inspections?
• Do custom millwork, lighting, equipment, signage or furniture have lead times?
• Can construction happen during normal hours, or only after hours?
• Will final cleaning, equipment testing, deficiencies and business licence steps fit inside the schedule?
A 30-day fixturing period does not automatically mean 30 days of construction. If the first two weeks are spent waiting for landlord comments or missing drawings, the business is already behind.
Ask the landlord these renovation questions before signing
Do not wait until after signing to ask how renovation works in the building. These questions can save a lot of confusion later:
• Is there a tenant construction manual or landlord work letter?
• Are existing drawings, reflected ceiling plans, electrical information or mechanical information available?
• What was the previous approved use of the unit?
• Who reviews tenant improvement drawings, and how long does review usually take?
• What insurance, WorkSafeBC, business licence or contractor documents must be submitted before construction?
• What are the allowed construction hours?
• Are signage, exterior work, roof access, exhaust routes or base-building systems restricted?
If the landlord or property manager cannot answer right away, that does not always mean the space is bad. It means the owner should not build the opening schedule on assumptions.
Landlord approval is not the same as a city permit
This is one of the most common misunderstandings. A landlord can approve the business concept, but the city may still need to review parts of the renovation. A city permit may be possible, but the landlord can still require separate approval before anyone works inside the building.
For example, a landlord may say a cafe is welcome in the plaza. That does not automatically confirm that the unit has the right kitchen infrastructure, washroom arrangement, occupancy conditions, ventilation route, grease management or electrical capacity. It also does not confirm that drawings will pass city review if the scope triggers a permit.
Before signing, business owners should identify whether the project might involve building permit review, development permit or change-of-use questions, plumbing, electrical, mechanical, sprinkler, fire alarm, signage or health authority coordination. The exact path depends on the municipality, building, existing use, proposed use and scope.
Walk the site like a contractor, not like a customer
During the showing, most people look at the front door, windows, ceiling height and general feel. For renovation planning, the walk-through needs to be more practical.
• Where is the electrical panel, and does it have capacity for the proposed use?
• Where are plumbing lines, drains and existing washrooms?
• Is the HVAC existing, shared, old, undersized or difficult to modify?
• Are sprinklers, fire alarm devices and emergency lighting already in the right locations?
• Can materials, equipment and millwork physically get into the unit?
A clean-looking unit can still be expensive to renovate if the systems behind the finishes do not support the business.
Restaurant tenants should check the kitchen before the dining room
For restaurants, cafes, bubble tea shops, bakeries and hot pot concepts, the dining room is only half the story. The kitchen and building systems decide whether the concept is realistic.
• Is there an existing commercial hood, and is it suitable for the new cooking equipment?
• Is make-up air available or possible?
• Where does exhaust travel, and is roof or shaft access allowed?
• Is a grease interceptor or grease trap required for the concept?
• Can the plumbing support sinks, dishwashing, floor drains, beverage equipment and prep needs?
• Is gas available if the menu requires gas cooking?
• Is the electrical service enough for refrigeration, cooking equipment, POS, lighting and HVAC?
A restaurant lease can become costly if these items are discovered after signing. The right dining room does not help much if the kitchen cannot be approved, built or operated efficiently.
Retail, office and service businesses have different red flags
Not every commercial space needs a commercial kitchen, but every business type has its own practical checks.
• Retail: storefront visibility, customer path, display walls, lighting, POS location, stockroom, security, signage rules and after-hours access.
• Office: reception, meeting rooms, acoustic privacy, data, Wi-Fi, HVAC comfort, washroom access, accessibility and staff circulation.
• Showroom: display walls, product power needs, lighting angles, mounting surfaces, visitor path, presentation area and storage.
• Clinic or service space: privacy, room sizes, reception flow, water needs, ventilation, cleaning, staff area, storage and customer waiting.
A unit that worked for the previous tenant may not work for the next business without major changes. The previous use is useful information, but it is not a guarantee.
Lease items that can change renovation cost
The lease should be reviewed with a broker or lawyer, but owners should pay attention to renovation-related terms because they can affect budget and schedule.
• Fixturing period: Is it long enough for design, approval, permits, construction, inspections and deficiencies?
• Free rent: Does it actually cover the period before opening, or does rent start while approval is still pending?
• Landlord work: What is the landlord delivering before possession, and what remains tenant responsibility?
• Tenant work: Who pays for washrooms, HVAC, electrical, plumbing, sprinklers, storefront or base-building changes?
• Restoration clause: Will the tenant need to remove improvements at the end of the lease?
These are not small details. They can decide whether the project opens smoothly or spends weeks negotiating responsibilities after the lease is already signed.
What to send a contractor for a useful early estimate
An early estimate is only useful if the contractor receives enough information. Before asking for pricing, gather as much of the following as possible:
• Unit address and city
• Current lease status and target possession date
• Photos and videos from the walk-through
• Existing drawings or landlord plan, if available
• Desired opening date
• Business type and basic operation model
• Equipment list, especially for food-service projects
• Budget range, even if it is preliminary
A contractor can give better early guidance when the owner shares the business reality, not just the square footage.
A simple pre-lease walk-through checklist
Before committing to a space, walk through it with this practical checklist:
• Take photos of the front, ceiling, floor, electrical panel, washrooms, mechanical equipment, plumbing, rear access and storage areas.
• Ask what can and cannot be touched in the unit.
• Ask whether previous tenant improvements were permitted.
• Confirm if there are known building issues, leaks, odour, noise complaints or neighbour restrictions.
• Check how construction materials and large equipment will enter the unit.
• Ask if signage, patio, exterior lighting, exhaust, roof access or storefront changes need separate approval.
The goal is not to make the lease process slower. The goal is to avoid signing quickly and then losing time when renovation questions finally appear.
FAQ
Should I bring a contractor before signing a lease?
If the business needs renovation before opening, yes. Even a short site review can flag electrical, plumbing, HVAC, landlord, permit or layout issues that may affect cost and timing.
What is the biggest lease mistake business owners make before renovation?
Many owners focus on rent and location but do not check whether the unit can support the planned business. The result can be extra cost, a delayed opening or a layout that has to be redesigned after signing.
Can I start construction during the fixturing period?
Only if the landlord requirements are met and any required permits or trade approvals are in place. The fixturing period can disappear quickly if drawings, approvals or missing information are not ready.
What should restaurant owners check first?
Ventilation, make-up air, grease management, plumbing, gas, electrical load, equipment layout, delivery access and inspection sequence. These items can affect whether the concept is practical in that unit.
Does every commercial renovation need a permit?
No. It depends on the city, building, existing use, proposed use and scope. But layout changes, plumbing, electrical, mechanical, fire safety, accessibility or occupancy-related work can trigger review, so it should be checked early.
Planning to lease a commercial space in Vancouver?
Y&Y Construction helps business owners review, plan and build commercial renovation, tenant improvement and design-build interior projects across Vancouver, Richmond, Burnaby, Coquitlam, Langley and the Lower Mainland.
If you are comparing spaces, negotiating a lease or preparing a new business opening, contact Y&Y Construction to discuss your renovation scope, timeline and site conditions before construction decisions become expensive.
