Commercial Tenant Build Outs

[Danielle Zimmerman]

Hello,

I own a commercial building with storefront space. The building itself is historic, but has had updates to plumbing, electrical and HVAC to suit office space needs. I have a tenant who owns a coffee shop who would like to put their business in one of the store fronts. I feel so way over my head! I had them fill out a very basic LOI which laid out their renovation needs for the space. We are now trying to help them find a contractor who is not just fairly priced but has time to do the job. Am I going about this correctly?

They are going to finance the construction they need done to make the space up to code for their coffee shop use. At what point am I responsible for upgrades? Or is it just all negotiable?

I feel like some costs I should cover, like anything that is foundational, electric and plumbing. Help!