Tenant Improvement Cost in Vancouver BC: 2026 Pricing Guide
Tenant improvement construction in Vancouver BC in 2026 ranges from $80 per square foot for a basic open-plan office fit-out to over $300 per square foot for a medical clinic or restaurant. The range is wide because the variable is not just size but use type, existing condition of the space, and the level of mechanical and electrical work required.
This guide breaks down TI costs by use type, explains what the landlord typically covers versus what the tenant pays, and walks through the City of Vancouver permit process. Operators who want this managed under a fixed-price contract work with a commercial general contractor such as Verterra Builds, which completes office, retail, medical, and restaurant TI across Greater Vancouver and Victoria from $80 per square foot. Prices are current as of June 2026.
Tenant Improvement Cost by Use Type in Vancouver (2026)
| Use Type | Cost per Sq Ft | Notes |
|---|---|---|
| Open-plan office | $80 to $120 | Basic partitions, standard lighting, carpet tile |
| Private office fit-out | $110 to $150 | More partitions, upgraded finishes, millwork |
| Co-working space | $90 to $140 | Phone booths, collaborative zones, IT infrastructure |
| Retail (standard) | $100 to $160 | Display millwork, feature lighting, storefront work |
| Retail (high-end) | $150 to $220 | Custom millwork, premium finishes, designer lighting |
| Medical clinic | $200 to $280 | Dedicated circuits, hospital-grade finishes, plumbing |
| Dental office | $220 to $300 | Operatory plumbing, isolated power, X-ray shielding |
| Restaurant (QSR) | $180 to $260 | Commercial kitchen, ventilation hood, health authority |
| Restaurant (full-service) | $250 to $350 | Full kitchen, bar, dining room, feature finishes |
These are all-in construction costs including permits, labour, materials, and subcontractors. They exclude design and drawing fees (typically 8 to 15 percent of construction cost), furniture, loose equipment, and GST.
What Does the Landlord Pay vs the Tenant?
Most commercial leases in Metro Vancouver include a tenant improvement allowance negotiated as part of the lease. The allowance is stated in dollars per square foot and is credited against the construction cost.
Typical TI allowances in Vancouver (2026):
- Class A downtown office: $80 to $120 per sq ft
- Suburban office and industrial: $40 to $80 per sq ft
- Ground-floor retail: $50 to $100 per sq ft
- Medical building: $100 to $150 per sq ft
If the allowance is $100 per sq ft and the actual construction cost is $140 per sq ft, the tenant pays $40 per sq ft out of pocket on top of the allowance. In a cold shell space with no existing HVAC, plumbing, or electrical distribution, the gap between allowance and actual cost is typically wider.
The City of Vancouver Tenant Improvement Program (TIPS) offers a faster permit stream for minor interior renovations that meet specific criteria. Not all TI work qualifies, but for straightforward office fit-outs that do not touch base building systems, TIPS can reduce permit turnaround to 4 to 6 weeks.
How Long Does a TI Project Take in Vancouver?
Permit phase: 8 to 16 weeks at the City of Vancouver for standard TI applications. Incomplete packages trigger re-review cycles. Working with a contractor who has a track record of submitting complete packages saves weeks.
Construction phase: 6 to 14 weeks depending on scope. A basic 2,000 sq ft office fit-out: 6 to 8 weeks. A 5,000 sq ft medical clinic: 12 to 16 weeks. Restaurant TI: 10 to 18 weeks including health authority coordination.
Total timeline from lease signing to occupancy: 5 to 8 months is typical for a standard office or retail TI in Vancouver, with restaurant and medical running 7 to 10 months. Planning for permit turnaround in the lease commencement date is critical, and many tenants now negotiate a rent-free period to cover the permit phase.
Office Tenant Improvement: What Is Included
A standard office fit-out in Vancouver covers:
- Demolition of existing condition to base building
- New framing and drywall partitions to ceiling
- Mechanical: HVAC diffusers connected to base building VAV system
- Electrical: new panel, circuit distribution, lighting
- Lighting: LED recessed fixtures, occupancy sensors, emergency lighting
- Flooring: carpet tile in open areas, LVT in reception and breakroom
- Millwork: reception desk, kitchenette, storage
- Washroom modifications if required by lease
- Building permit, mechanical permit, electrical permit
- Final inspection and permit close
Not included in the typical TI scope: furniture, audio-visual equipment, network cabling (unless specified), signage, and landlord-supplied base building connections.
Restaurant Tenant Improvement: What Makes It More Expensive
Restaurant TI in Vancouver is the most complex use type in commercial construction. The cost premium over office work comes from four sources.
Mechanical complexity. A commercial kitchen requires a ventilation hood system with makeup air, grease exhaust at the code-required velocity, and coordination between the mechanical contractor and hood supplier. Hood systems alone run $30,000 to $80,000 depending on size and type.
Plumbing intensity. A commercial kitchen typically requires multiple floor drains, a grease trap or interceptor, a three-compartment sink, multiple hand sinks at the code-required locations, and high-volume water supply for dishwashing equipment.
Health authority compliance. Every food service establishment in Vancouver must pass a Fraser Health Authority food premises inspection before opening. The inspection covers hand sink placement, surface materials, equipment clearances, and ventilation. A contractor who builds to these standards from the permit stage passes the inspection on the first visit. One who does not will have costly remediation work.
Three-phase electrical. Commercial kitchen equipment including ovens, walk-in cooler compressors, and dishwashers typically requires three-phase 208V or three-phase 600V power. Most restaurant TI projects require a panel upgrade or service extension to accommodate the load.
Medical Clinic Tenant Improvement: The Regulatory Layer
Medical and dental clinic TI in Vancouver involves a regulatory layer that most contractors are not prepared for.
Dental offices require isolated power for operatories, which means an isolation transformer and isolation monitoring system for each treatment chair. This is a BC Electrical Code requirement, not optional. Lead lining for X-ray rooms requires coordination between the dentist's equipment supplier, a radiation physicist, and the contractor.
Medical imaging and diagnostic clinics have their own equipment-specific requirements that must be coordinated with the equipment manufacturer before any rough-in drawings are produced.
A contractor who has built multiple dental and medical clinics will know these requirements before the drawings are issued. A contractor who has not will discover them during construction, which generates change orders.
How to Evaluate a TI Contractor in Vancouver
Ask for completed projects of the same use type. A contractor who has built five office fit-outs but no restaurants is not a restaurant TI contractor. The mechanical and health authority coordination is a different discipline.
Ask about permit turnaround track record. City of Vancouver permits can be expedited by submitting complete packages. Ask the contractor what their average turnaround has been on recent TI permits and whether they have had re-review cycles on their last five projects.
Ask about landlord coordination experience. TI work in Vancouver often requires landlord approval for base building connections, after-hours access in occupied buildings, and specific insurance certificates. A contractor who has not done this before will create friction with your landlord.
Get a fixed-price contract with a milestone schedule. Tenant improvement projects have deadlines driven by lease commencement dates and opening commitments. A milestone schedule that maps construction phases to those dates, with a fixed price for the defined scope, is the standard you should expect.
Verterra Builds completes commercial tenant improvements for office, retail, medical, and restaurant spaces across Greater Vancouver and Victoria. Contact us for a fixed-price quote on your TI project.