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Tenant Improvement Electrical: What Cincinnati Landlords and Property Managers Need to Know

Tenant turnover is part of owning commercial property. A retail tenant moves out, a new one moves in, and somewhere between those events, the space needs electrical work to fit the new tenant's use. The tenant improvement (TI) process can go smoothly or it can blow up your lease commencement date and trigger expensive change orders. The difference is usually in the planning phase, not the execution.

This post covers what Cincinnati landlords, property managers, and asset owners need to know about commercial electrical tenant improvement work: how it's typically scoped, who pays for what, what causes most problems, and how to set up TI projects to actually finish on time.

The Two Sides of TI Electrical Scope

Commercial TI electrical work is almost always a negotiation between landlord scope and tenant scope. The lease usually defines this, sometimes clearly and sometimes not. The two sides:

Landlord-Provided (Base Building) Electrical

What the landlord typically provides as part of the base building or in the work letter:

  • Main electrical service to the building or to the demising line of the tenant space
  • House-side electrical (common areas, exterior lighting, parking lot lighting)
  • Demising panel or service that the tenant connects to
  • Capped utilities to the tenant space
  • Existing electrical infrastructure left from the previous tenant (sometimes)

Tenant-Provided Electrical

What the tenant typically pays for as part of their fit-out:

  • All electrical work inside the tenant space beyond the demising line
  • Lighting design and installation
  • Power for tenant equipment (kitchen equipment, IT, signage, etc.)
  • Fire alarm modifications specific to the tenant's layout
  • Code compliance updates
  • Permits and inspection coordination

The Gray Areas

Where most disputes happen:

  • Existing electrical from previous tenant. Is the new tenant inheriting it as-is, or is the landlord delivering a "white box" with electrical demolished to baseline?
  • Service capacity. If the new tenant needs more capacity than the previous tenant, who pays for the upgrade?
  • Code corrections. If the existing electrical isn't to current code, who pays for bringing it current?
  • HVAC electrical. Often shared between landlord and tenant scope depending on lease.
  • Tenant equipment connections. Final connections to tenant-furnished equipment can fall on either side.

The cleaner the lease language on these, the smoother the project.

Common TI Scenarios and What They Cost

1. Office to Office (Same Use)

Easiest TI scenario. The space was an office, the new tenant is also an office. Existing lighting, outlets, and infrastructure may largely work as-is. Typical scope: lighting layout updates, outlet additions in cubicle areas, conference room AV power, IT/server room dedicated circuits.

Most office-to-office TI projects in Cincinnati are 4 to 8 weeks of total project time including design, permitting, and installation, with electrical scope typically running 2 to 4 weeks of that.

2. Retail to Retail (Same Use)

Similar to office-to-office in that base infrastructure may carry over. Tenant-specific items typically include lighting design (retail lighting is brand-specific), POS power, signage, and storefront lighting. Some retail tenants require dedicated circuits for specific equipment.

Brand-driven retail tenants (national chains) have specific electrical specifications they require, regardless of what existed before. The TI scope often includes complete demolition and rebuild of the lighting and power layout.

3. Office or Retail to Restaurant (Use Change)

The most challenging TI scenario from an electrical standpoint. Restaurants require significantly more electrical capacity than office or retail tenants. Service capacity is frequently the limiting factor.

Typical electrical scope: kitchen equipment power per equipment cut sheets (frequently 100A+ of dedicated capacity), hood and exhaust fan power, walk-in cooler and freezer dedicated circuits, make-up air unit power, shunt-trip breakers for cooking equipment, POS and front-of-house circuits, lighting design (often dramatic for ambiance).

Restaurant TI also involves division of work between trades: the electrician handles power circuits, the hood vendor handles hood controls, the fire suppression vendor handles suppression and interlocks. Coordination matters.

Restaurant TI projects in Cincinnati typically run 12 to 20 weeks total, with electrical scope being 4 to 8 weeks of that. Service upgrades, when needed, can add weeks for Duke Energy coordination.

4. Retail to Medical or Office to Medical (Use Change)

Medical TI adds specialty requirements: dedicated circuits for medical equipment, emergency power systems for life-safety equipment, isolation transformer or isolated ground requirements for sensitive electronics, ADA-compliant outlet and lighting placement, and coordination with medical equipment vendors who specify their power requirements.

Medical TI typically requires more design time and engineered drawings (at least for the medical equipment scope). 8 to 16 weeks total project time is typical.

5. Restaurant to Restaurant (Same Use, Different Operator)

Often more involved than expected. The previous restaurant's hood, equipment, and electrical were specified for their menu and operations. The new restaurant probably needs different equipment, which means different power requirements.

Common items: equipment power circuit modifications, hood replacement (often), cooler/freezer relocations, additional dedicated circuits for new equipment. Service capacity is usually adequate, but the layout almost always changes.

What Goes Wrong (and How to Avoid It)

Problem 1: Vague Lease Language on Electrical Scope

The lease says the landlord provides "adequate electrical service." When the tenant moves in and discovers the existing service can't support their kitchen equipment, an expensive negotiation begins.

Solution: Specify electrical scope in the lease or work letter. Include service size in amps, panel capacity, and any specific items the landlord is providing or excluding. Generic language causes problems.

Problem 2: Late Tenant Equipment Specifications

The tenant doesn't finalize equipment selection until well into the buildout. The electrician designs to assumed loads, only to discover the actual equipment requires different circuits, voltages, or capacities.

Solution: Get equipment cut sheets early. Tenant final equipment specifications should be locked before electrical rough-in starts. Changes after rough-in are expensive change orders.

Problem 3: Permit Delays

Cincinnati and surrounding jurisdictions have varying permit turnaround times. Electrical permits for TI work can take 1 to 4 weeks depending on complexity and current department backlog. If the schedule assumes a 1-week permit turnaround and reality is 4 weeks, the schedule slips.

Solution: Build realistic permit timelines into the schedule from the start. Submit permits early. Don't assume best-case turnaround.

Problem 4: Duke Energy Coordination on Service Work

If the TI requires service capacity changes, meter relocations, or anything else Duke Energy has to do, that scheduling has to be planned in advance. Duke Energy doesn't move on tenant timelines.

Solution: Engage Duke Energy early. Service work timelines from Duke Energy should be confirmed before lease commencement is set.

Problem 5: Inadequate Existing Documentation

The previous tenant's electrical isn't documented. The electrician has to spend time figuring out what's connected to what, which adds labor cost and risks of cutting active circuits.

Solution: Maintain as-built documentation when previous tenant moves out. If as-builts don't exist, budget time and money for the electrician to investigate before demolition.

Problem 6: Code Corrections Surfacing Mid-Project

The existing electrical isn't to current code. Some items (whole-home surge protection, AFCI/GFCI updates, grounding) only become apparent during the work.

Solution: Pre-construction assessment by the electrician to identify code issues. Negotiate responsibility for code corrections in the lease before construction starts.

Problem 7: Restaurant Vendor Coordination Failures

The hood vendor expects the electrician to provide power. The fire suppression vendor expects the electrician to coordinate interlocks. The kitchen equipment supplier expects the electrician to make final connections. If these coordination points aren't clear, things fall through cracks.

Solution: Define vendor scope clearly in writing. Pre-construction coordination meetings with all trades. The general contractor or project manager should track each interface point.

What Landlords Should Insist On

Whether you're managing a single property or a portfolio, a few practices that protect you:

  1. Detailed work letters. Specify what you're providing electrically. Cover service size, panel capacity, what's demolished and what's left, and any specific items you're excluding.
  2. Pre-construction electrical assessments. Before signing the lease (or at least before construction starts), have an electrician evaluate the existing condition and document it. This becomes the baseline for what you delivered.
  3. Maintain as-built drawings. When tenants leave, get as-built electrical documentation as part of close-out. Saves time and money on the next TI.
  4. Code compliance audits. Periodically have an electrician evaluate properties for code compliance issues that could surface during a TI. Address them on your timeline rather than during a tenant negotiation.
  5. Service capacity documentation. Know what your buildings actually have for electrical service. Don't rely on assumptions or original drawings; verify current capacity.
  6. Establish relationships with electrical contractors who handle TI well. The first TI project with a new contractor is the most expensive. Repeat relationships are more efficient because the contractor learns your buildings.

Pricing Practices That Protect You

For TI electrical work specifically:

Lump sum pricing with detailed scope is generally better than time-and-materials for fixed-scope projects. The contractor takes on the schedule and labor risk; you get cost certainty.

Allowances for unknowns. When existing conditions aren't fully documented, building in allowances for typical issues (code corrections, abandoned wiring removal, unforeseen demolition findings) is fair to both sides.

Change order procedures. Establish in writing how change orders are documented, priced, and approved. Verbal scope changes during construction are a common source of disputes.

Progress billing tied to milestones. Final payment held until inspection passes and as-builts are delivered.

About Ground Zero Electric

Ground Zero Electric is a licensed Ohio and Kentucky electrical contractor specializing in commercial tenant improvement work across Greater Cincinnati and Northern Kentucky. We work with landlords, property managers, general contractors, and tenants on TI projects ranging from simple office buildouts to complex restaurant fit-outs.

Our commercial TI work includes detailed bid documentation, lump-sum pricing on hard-bid projects, fire alarm capability under one license (Ohio Fire Alarm #54.31.4834), and the schedule discipline that commercial projects require.

Learn more about commercial electrical and TI →

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