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Commercial Renovation Bidding Guide: Win Tenant Improvement & Retrofit Projects 2025

Master commercial renovation bidding with strategies for tenant improvements, building retrofits, and adaptive reuse projects. Learn estimating, scheduling, and winning techniques.

BidFinds Team
December 11, 2025
11 min read

Commercial Renovation Market Overview

Renovation Construction Market

Market Size:

$400B+

Annual renovation spend

Growth Rate:

5-7%

Year over year

TI Average:

$50-150/SF

Office buildouts

Commercial renovation represents a massive and growing segment of the construction industry. Unlike new construction, renovation work requires specialized skills in working within existing structures, managing occupied buildings, and solving unexpected challenges. Contractors who master this niche can build sustainable businesses with repeat clients.

Why Focus on Renovation?

Market Advantages

  • • Shorter project durations
  • • Less weather dependent
  • • Repeat tenant improvement work
  • • Lower bonding requirements

Growth Drivers

  • • Aging building stock
  • • Sustainability retrofits
  • • Post-pandemic space redesign
  • • Adaptive reuse trends

Commercial Renovation Project Types

Tenant Improvements (TI)

Tenant improvement work represents the largest segment of commercial renovation. These projects customize base building space for specific tenant needs.

Shell Conditions

  • • Cold Shell: Bare structure, no MEP
  • • Warm Shell: Basic HVAC, some finishes
  • • Hot Shell: Previous buildout exists
  • • Second Gen: Minor modifications needed

Common Work Scope

  • • Demising walls and partitions
  • • Ceiling grid and tiles
  • • Flooring and millwork
  • • Electrical and data distribution
Building Retrofits
  • HVAC system replacements
  • Elevator modernization
  • Facade/curtain wall replacement
  • Fire/life safety upgrades
  • ADA compliance improvements
Adaptive Reuse
  • Office to residential conversion
  • Warehouse to creative office
  • Retail to mixed-use
  • Historic renovation
  • Industrial to flex space

Renovation Estimating Challenges

Key Estimating Considerations

Existing Conditions

Always conduct thorough site investigation. Hidden conditions are the biggest cost risk in renovation. Budget 5-15% contingency for unknowns.

Working in Occupied Spaces

After-hours and weekend work costs more. Factor in noise/dust containment, temporary barriers, and security requirements.

Demolition Scope

Selective demolition is labor-intensive. Consider asbestos/lead testing requirements and hazmat abatement costs.

MEP Tie-ins

Connecting to existing building systems requires coordination with building management and potential shutdowns.

Cost Components

Demolition

$3-8/SF

Framing/Drywall

$8-15/SF

Ceilings

$4-10/SF

Flooring

$5-25/SF

Electrical

$12-25/SF

HVAC

$15-35/SF

*Costs vary significantly by market, building class, and project complexity

Finding Renovation Opportunities

Primary Sources
1

Property Management Companies

Build relationships with property managers who handle multiple buildings. They coordinate tenant improvements and building maintenance.

2

Commercial Real Estate Brokers

Brokers know about lease deals that include TI allowances. Get on their referral list for tenant buildouts.

3

Architecture & Design Firms

Interior architects and designers frequently specify contractors for their renovation projects.

4

Bid Aggregation Platforms

ConstructionBids and similar platforms aggregate TI and renovation projects from multiple sources.

Target Client Types

Private Sector

  • • REITs and institutional owners
  • • Corporate real estate departments
  • • Retail chains (rollout programs)
  • • Restaurant groups
  • • Medical/dental practices

Public Sector

  • • GSA building modernization
  • • Municipal facility upgrades
  • • University building renovations
  • • Hospital modernization
  • • Library and community centers

Winning Renovation Bids

Competitive Advantages

  • Demonstrate Relevant Experience

    Show similar projects - same building type, similar scope, comparable budget. Include photos and references.

  • Provide Detailed Schedule

    Renovation clients care about schedule as much as price. Show phasing plan and milestone dates.

  • Address Logistics Proactively

    Explain how you'll manage deliveries, protect occupied areas, and minimize disruption.

  • Clarify Allowances and Exclusions

    Be explicit about what's included. Use allowances for items that can't be fully defined.

Common Bidding Mistakes
  • Underestimating demolition labor for selective removal
  • Not visiting the site during occupied hours
  • Missing building-specific requirements (loading dock, elevator use)
  • Insufficient contingency for hidden conditions
  • Not accounting for after-hours premium labor

Execution Best Practices

Project Management Focus Areas

Communication

Over-communicate with building management and tenants. Daily updates during critical phases. Address complaints immediately.

Dust & Noise Control

Install proper containment barriers. Schedule loud work during off-hours. Use HEPA filtration for occupied buildings.

MEP Coordination

Schedule utility shutdowns well in advance. Coordinate with building engineer. Have backup plans for critical systems.

Change Order Management

Document existing conditions thoroughly. Price changes quickly. Get approvals before proceeding.

Building Long-Term Client Relationships
  • Deliver on schedule - reputation is everything in TI work
  • Be responsive to punch list items and warranty calls
  • Provide excellent closeout documentation
  • Stay in touch with property managers between projects
  • Offer competitive pricing for repeat clients

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