From White Collar to Blue Collar: The Truth About Commercial Tenant Improvements

About This Episode

In this episode of First Shift, host Graeme Bryks welcomes Peter C. Brumley, a Denver-based commercial real estate professional and general contractor who operates at the intersection of leasing and building. Peter runs Brumley Realty while also serving as Vice President at a commercial general contracting firm. This dual role lets him handle the full lifecycle of a commercial space, from finding tenants and negotiating leases to physically building out spec suites, tenant improvements, and industrial renovations. His projects span medical facilities like ERs and operating rooms, industrial warehouses near Denver International Airport, and office build-outs at properties like Prentice Point and Lincoln Business Center. Peter breaks down the real mechanics of commercial tenant improvements for contractors who may only know the residential side. He walks through what it takes to convert a gutted warehouse into a leaseable asset: demolition, bathroom rebuilds, HVAC upgrades for assembly-use spaces, LED electrical panel conversions, life safety and fire sprinkler compliance, and final certification. His team completed spec suite build-outs at Lincoln Business Center in roughly 10 weeks. In the last two years, his firm has delivered around 36 spec suites with 35 of them leased, a track record that speaks to the value of combining construction speed with real estate market knowledge. The conversation gets into some real talk about the state of the industry. Peter explains that construction loan rates at 8.5% are finally loosening up bank lending, and he predicts AI will eventually help bring construction costs down for the first time in a generation. He compares it to the technology curve that made electronics cheaper over decades and believes construction will follow a similar path. At the same time, he is blunt about the trades labor shortage: it takes five to ten years to develop an artisan-level tradesperson, and that pipeline is not keeping up with demand. HVAC capacity in Denver is at only 60% of pre-2019 levels, and major GC shops are already booking work 12 to 18 months out. Peter also shares hard-earned advice for residential contractors who want to break into commercial work. The biggest differences: you may need a separate license depending on your state, commercial clients can take 180 days or longer to pay, and filing a lien on a commercial client in a small city can get you blacklisted permanently. His bottom line is simple. If you want to go commercial, you better be a cash GC with reserves in the bank. The episode is full of practical, no-nonsense guidance for contractors, trades business owners, and anyone curious about how the commercial construction and real estate worlds actually operate in 2026.

Key Takeaways

• 1Peter's team completed 36 spec suites in the last two years with 35 leased, proving that combining GC capabilities with real estate knowledge dramatically accelerates tenant placement.
• 2Commercial tenant improvements at Lincoln Business Center were completed in approximately 10 weeks, covering demo, bathrooms, HVAC, electrical, plumbing, fire safety, and certification.
• 3Construction loan rates have come down to 8.5%, and banks are actively pushing to lend again, signaling renewed momentum in commercial development.
• 4HVAC labor in Denver is at only 60% of pre-2019 levels, and large GC firms are already booking 12 to 18 months out, highlighting the severity of the skilled trades shortage.
• 5Peter predicts AI will eventually bring construction costs down for the first time in a generation, similar to how technology reduced electronics prices over decades.
• 6For residential contractors going commercial: you may need a separate license, clients can take 180+ days to pay, and filing a lien on a commercial client in a small city can get you permanently blacklisted.
• 7Peter uses Procore for project management across his commercial jobs and recommends having strong cash reserves before attempting commercial work.

Watch This Episode

Listen on Spotify