Tenant Improvement's Renaissance

Three consequences for the next decade. First, second-generation space becomes gold. The arbitrage of inheriting infrastructure explains why So. Fox took over a former Farm Burger,5 why Switchyards deliberately occupies old churches and auto shops,6 and why "no hood, no heavy equipment" concepts like Uncle Sharkii can outgrow better-funded rivals.

Second, TI capability becomes a brand's core competency — the operators who standardize buildout kits, compress timelines, and manage GCs like a supply chain will open units 30–40% cheaper and months faster than peers, which compounds across a 50-unit journey into an insurmountable lead.

Third, a financing market forms around the gap. The delta between landlord allowance and true buildout cost is precisely where banks are weakest (nothing to collateralize until the store opens) — so expect specialized TI and buildout financing, milestone-based draws, and landlord/lender hybrid structures to become standard instruments by the early 2030s. This is a gap we think about constantly at Homegrown, because buildout-to-opening is exactly the window where great operators are most capital-constrained and least bankable. We’ve been pioneering the TI Bridge / TI Advance since 2024. 

The 2036 picture. TI stops being an afterthought in the LOI and becomes a modeled, financeable, benchmarked asset class of its own — with data on cost-per-square-foot by concept type, standardized draw schedules, and underwriting that treats a proven brand's buildout like the pre-production of a franchise film rather than an all-out leap of faith. Third-party funding layers (like Homegrown TI Bridge & TI Advance) make this all possible.