The Dallas–Fort Worth metroplex is one of the busiest commercial construction markets in the country. Office towers, retail corridors, medical campuses, and mixed-use developments are going up constantly — and behind all of that new construction is an equally active tenant improvement (TI) and remodel market. If you're a business owner, property manager, or developer trying to budget a commercial remodel in Dallas, here's a realistic look at what things actually cost in 2026.
Commercial Remodel Cost by Space Type
The single biggest variable in any commercial project is what type of space you're building out. A dental office and a warehouse conversion are fundamentally different projects even if they're the same square footage.
| Space Type | Installed Cost (per sqft) | |---|---| | Office tenant improvement (TI) | $75 – $150 | | Retail storefront buildout | $60 – $120 | | Restaurant / food service | $150 – $350 | | Warehouse conversion to office or retail | $40 – $90 | | Medical / dental office | $120 – $250 |
These are all-in ranges for completed, permit-pulled work in the DFW area. The low end assumes an open floor plan with minimal MEP complexity. The high end reflects custom finishes, heavy mechanical work, or specialized code requirements.
What's Usually Included in a Commercial Remodel
When a general contractor gives you a TI or remodel bid in Dallas, the scope typically includes:
Demolition — removing walls, flooring, ceilings, and fixtures from the existing shell or previous tenant buildout. Demo costs range from $3–$8/sqft depending on what needs to come out and how much debris there is.
Framing and drywall — new partition walls, bulkheads, and ceiling grid. This is where floor plan changes happen.
MEP rough-in — mechanical (HVAC), electrical, and plumbing work behind the walls and above the ceilings. For office and retail work, MEP is a moderate cost. For restaurants and medical offices, MEP is the single biggest driver of cost. A restaurant kitchen requires a commercial grease hood, makeup air system, floor drains, three-compartment sinks, and heavy electrical for equipment. A dental office needs medical-grade plumbing for each operatory, vacuum lines, and a dedicated compressor room. Neither of those comes cheap.
Finishes — flooring, paint, ceiling tile, millwork, storefront glass, and fixtures. This is where the per-sqft cost spreads the widest based on what quality level you're targeting.
ADA compliance — any space open to the public must meet ADA requirements for restrooms, accessible routes, door widths, and signage. This isn't optional, and ignoring it creates liability. Budget it in from the start.
Dallas-Specific Factors
Permit timeline. Commercial projects in Dallas go through the City of Dallas Building Inspection department. For straightforward TI work, plan on 2–4 weeks for permit review. Projects that involve structural changes, change of occupancy, or fire suppression modifications can take 6–8 weeks. The City has improved its online permitting system, but plan your schedule to account for this lead time — you can't break ground until permits are in hand.
Energy code. Dallas has adopted IECC 2021, which requires certain insulation values, lighting controls (occupancy sensors in most spaces), and HVAC efficiency minimums. This is rarely a budget-buster on its own, but it does mean some older HVAC equipment can't simply be reused — it has to be replaced or upgraded to meet current code.
ADA requirements. As mentioned, any commercial space accessible to the public requires ADA-compliant restrooms, accessible parking, and compliant entrances. On a ground-up TI, this is designed in from the start. On a renovation of an existing space, you may be required to bring the restrooms and accessible path up to current code even if you're only changing one room — the "path of travel" rule means that improvements to a primary area can trigger ADA upgrades along the route to that area.
Landlord vs. Tenant: Who Pays for What
In most DFW commercial leases, the landlord offers a TI allowance — a fixed dollar amount per square foot they'll contribute toward your buildout. Common TI allowances range from $30–$80/sqft, though high-end Class A buildings sometimes offer more to attract anchor tenants.
There are a few arrangements to understand:
TI allowance (most common): Landlord gives you a credit (paid as reimbursement or deducted from first months' rent) and you manage the construction. You spend what you want above the allowance, and keep anything you come in under.
Turnkey lease: Landlord builds the space to an agreed spec and hands you keys. You have less control over finishes and quality, but less risk and hassle. Common for smaller tenants.
Buildout credit: Landlord gives you free rent for X months instead of a cash allowance. Economically similar, but cash flow works differently.
The practical implication: if a landlord is offering $50/sqft TI on a space where a proper buildout costs $90/sqft, you're funding $40/sqft out of pocket. Know what the all-in build cost is before you commit to a lease.
How to Get a Realistic Bid in DFW
Getting three bids is standard advice, but getting three useful bids requires a complete scope of work. Before going to market:
Have drawings or at least a concept plan. GCs cannot bid accurately from a napkin sketch. If you don't have an architect or space planner involved yet, expect wide variance in your bids — each contractor is filling in gaps differently.
Specify the finish level. "Standard finishes" means different things to different contractors. Specify flooring type, ceiling grid vs. open ceiling, millwork quality, and fixture grade.
Confirm what the base building provides. Know what HVAC, electrical capacity, and plumbing stubs exist in the space. A GC bidding a restaurant buildout needs to know if there's already a grease trap and adequate gas capacity, or if those need to be added from scratch.
Watch GC markup on specialty subs. HVAC, plumbing, and electrical are almost always subcontracted in commercial TI work. A full-service GC is valuable for coordination, but some GCs mark up specialty trades heavily. For large MEP scopes, it's worth asking for line-item visibility or getting independent MEP bids to compare.
Frequently Asked Questions
How long does a commercial remodel take in Dallas?
For a straightforward office TI in the 2,000–5,000 sqft range, plan on 6–10 weeks from permit approval. A full restaurant buildout typically runs 12–20 weeks. Larger retail buildouts or spaces with significant structural work can go longer. The permit process is separate from construction time — build that into your opening schedule.
Do I need a permit for my remodel?
Yes, for virtually any commercial work that involves structural changes, framing, MEP work, or change of occupancy. Cosmetic-only work (paint, carpet replacement, furniture) generally doesn't require a permit. When in doubt, ask your contractor or call the City of Dallas Building Inspection department directly. Unpermitted commercial work creates serious problems at lease termination, sale, and with your certificate of occupancy.
Can I stay open during construction?
Sometimes. For small remodels in one section of a larger space, a phased approach lets you keep other areas operational. But for a full gut renovation, it's usually not practical or safe to operate simultaneously. Your GC should be able to give you an honest assessment of what's feasible for your specific space.
Get a Free Commercial Estimate in Dallas
365 Builders handles commercial remodels and tenant improvements throughout the DFW area. We give you a detailed, line-item bid — not a ballpark number — so you can plan your budget with confidence.
Request a free quote or call us at (956) 607-0470 to talk through your project.