Capex required to subdivide a single floor for multiple tenants.
Construction · US
Capex required to subdivide a single floor for multiple tenants.
When a landlord subdivides a full floor for multiple tenants, additional capex is required (corridors, demising walls, separated MEP, restrooms). Often passed through to the tenant as part of the TI calculation or absorbed by the landlord depending on covenant strength.
Subdivision cost is part of the construction vocabulary that institutional Class A occupiers, landlords, and advisers use across US markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks the US definition alongside the global standard so cross-border occupiers can translate quickly.