Paul Leongas | The Real Cost of a Commercial Buildout Delay

Paul Leongas

A commercial buildout delay is not just a scheduling problem. It is a financial event with real carrying costs on one side and real tenant disruption on the other. Paul Leongas tracks buildout timelines the same way he tracked food cost percentages when he was running restaurants: as a number that is always worth paying attention to because it accumulates quickly when it moves in the wrong direction. He has seen buildout delays of two weeks turn into two months when the underlying causes were not addressed early. He has also seen projects come in on time because the right preparation happened before any contractor lifted a tool.

Every Day a Space Sits Empty Has a Price Tag

Paul Leongas calculates the daily cost of an empty commercial space before a project starts. If a space will generate $5,000 per month in rent when occupied, each day of vacancy during a buildout delay costs approximately $167. Over a 30-day delay, that is $5,000 in unrealized revenue. Over a 60-day delay, it is $10,000. This is obvious math, but it becomes abstract during a construction project when the focus is on the work rather than the calendar.

Carrying costs add to this number. Property taxes, insurance, utilities, and financing costs continue regardless of whether the space is generating rent. A building with a $3,000-per-month carrying cost and a 60-day buildout delay is in a $16,000 hole before the tenant opens. That number has to be factored into the project economics from the start.

Permit Delays Are Predictable if You Plan for Them

In Cook County and the North Shore municipalities Paul Leongas works in, permit timelines are real. A straightforward commercial interior permit might take three to five weeks depending on the municipality and the workload of the building department at the time of application. A permit with mechanical, electrical, or plumbing work may take longer. A project that involves a change of use takes longer still.

Paul Leongas builds permit timelines into his project schedules before work begins. He does not assume best-case permit processing and then react when the reality is different. He prepares for the likely scenario and treats anything faster as a bonus. The mistake he sees most often in development projects is sequencing permit applications too late. If pre-permit work can legally begin, it begins while the permits are pending. Delay in the application has a multiplier effect on everything downstream.

What He Tells Tenants Upfront About Timelines

Paul Leongas is direct with prospective tenants about buildout timelines. He gives realistic estimates based on what the project actually requires, not optimistic ones designed to close the deal. He has learned that overpromising on timing creates a worse outcome than underselling it.

A tenant who plans their business launch around an opening date that slips has a real problem. Staff scheduled to start have to be told to wait. Marketing planned around a specific opening has to be postponed. Landlord credibility takes a hit that can affect the entire length of the tenancy. Giving a conservative timeline and delivering on time or early is the better business. Paul Leongas has been the tenant waiting for a space. He knows what a delayed opening costs.