Sign InBuilding Better Spaces: 5 Benefits of Reality Capture in Tenant Improvement Projects
Leveraging Reality Capture: the Secret Weapon Property Managers are Using to Streamline Operations and Mitigate Risk
Tenant improvement projects are some of the most important investments commercial real estate (CRE) property managers make. Whether it’s renovating an office suite, reconfiguring a retail space, or upgrading for compliance, these projects directly impact long-term revenue. When improvements are well-coordinated, they lead to faster lease-ups, higher retention, and more efficient use of space.
But achieving those outcomes depends on more than design and budget. It requires a precise understanding of existing conditions and the opportunities that will add genuine value. Reality capture technologies make that possible, giving property managers an accurate digital record of their spaces that supports clearer planning for successful tenant improvements.
Understanding reality capture
Reality capture, at its core, is the process of collecting data about the real world and translating it into digital information. Property managers use reality capture to digitally document physical spaces using 3D scanning technologies and create accurate, navigable digital models, often referred to as digital twins. These models provide a precise record of existing conditions that can be shared and analyzed.
In commercial real estate, this capability is especially valuable for tenant improvements (TIs) — the renovations or customizations made to leased spaces so they meet the needs of incoming or renewing tenants. Common examples include:
Reconfiguring an office layout to accommodate hybrid work
Renovating retail units to match brand requirements
Updating finishes like flooring, paint, or lighting
Installing partitions or break rooms in multi-tenant buildings
Adding accessibility upgrades for ADA compliance
Replacing outdated fixtures, HVAC systems, or wiring
For property managers, tenant improvements are a balancing act: they must deliver upgrades that align with tenant expectations while protecting budgets, schedules, and asset value. Reality capture streamlines this process by replacing guesswork and outdated drawings. Modern, interactive 3D models help teams plan confidently, reduce rework, and complete improvements more efficiently.
5 benefits of reality capture in tenant improvement projects
The success of tenant improvements often hinges on how well teams can align around the realities of a space. Traditional floor plans and site walks can leave gaps in understanding, leading to misaligned expectations or missed opportunities. Reality capture creates a single source of truth that ensures improvements deliver value where it matters most — for tenants, owners, and property managers alike.
Let’s look at some of the key benefits of reality capture for tenant improvements.
1. Quantitative validation for renovations
Every tenant improvement begins with understanding what already exists. Preconstruction reality capture scanning replicates the current conditions of a space, ensuring accurate scoping, design, and planning while reducing the risk of costly demolition surprises. This data becomes the foundation for making confident decisions about reconfigurations, adaptive reuse, or tenant-specific upgrades.
With a precise 3D model, teams can:
Take measurements directly from the model and pre-verify material requirements before work begins
Confirm that new systems will fit as intended (partitions, office layouts, or equipment like HVAC and MEP)
Evaluate design options against real-world dimensions to avoid rework
To make these workflows practical, the capture itself has to be both precise and comprehensive. Matterport’s Pro3 camera delivers high-accuracy spatial data with the dimensional precision required for interior renovations. Complex geometries, fixtures, finishes, and mechanical systems are captured clearly.
Matterport scans can also be easily converted into BIM-ready formats (Revit, AutoCAD) to support design coordination, clash detection, and load calculations. For advanced AEC teams, high-density point cloud exports (E57) provide the precision needed for detailed modeling and analysis. This gives property managers and their partners the quantitative validation needed to move forward on tenant improvement projects with confidence.
2. Improved quality assurance and control
Some tenant improvements are driven almost entirely by quality assurance and control needs. Projects such as correcting uneven floors, updating outdated lighting, or ensuring compliance with ADA requirements all rely on precise measurements and careful verification. Without accurate documentation, these projects can drag on with repeated site checks and disputes over whether work was completed to spec.
Reality capture provides the foundation for QA/QC-driven tenant improvements. With a dimensionally accurate 3D model, property managers can:
Measure specifications like floor flatness or ramp inclines directly within the scan
Verify fixture placement, hallway widths, and clearance requirements
Check that installations match design intent before sign-off
To put this into practice, interactive reality capture models can be integrated into existing systems like Procore, where information is attached to specific locations for QA/QC context. Teams can:
Highlight areas needing correction with annotations, for example, “uneven floor section” or “outdated exit sign”.
Add notes to specify instructions like “replace ceiling tile” or “install glass partition”.
Attach supporting files like compliance checklists or fixture specifications directly to the model.
Link RFIs to exact points in the 3D model, giving contractors clear visual reference for resolving issues.
Reality capture transforms QA/QC from a reactive process into a proactive one, ensuring tenant improvements are delivered to spec the first time.
3. Risk mitigation
There are a range of risks specific to CRE tenant improvement projects. Common issues include:
Scope creep and cost overruns when tenant requests expand beyond the original agreement.
Disputes over pre-existing conditions that complicate liability.
Noncompliance with regulations like ADA accessibility or fire safety codes.
Boundary disputes when renovations encroach on common areas or exceed leased space.
Tenant dissatisfaction if the finished space fails to meet expectations.
Largely, these risks stem from poor visibility and miscommunication, where tenants and property managers are working from differing assumptions about the space and feasibility of upgrades.
Reality capture helps mitigate these risks by creating a transparent, verifiable record at every stage of a project:
Before TI work begins: Scans document the exact condition of a space, protecting both owners and tenants and preventing disputes over prior damage.
During renovations: Regular captures verify progress, ensuring modifications stay within lease boundaries and approved scope.
Compliance checks: Detailed 3D models support adherence to codes by enabling accurate measurement of hallways, inclines, or safety clearances.
Final as-builts: Completed scans serve as authoritative records that simplify future upgrades, support lease agreements, and reduce liability.
4. Accurate lease calculations
Even small misjudgments can create significant financial discrepancies over the course of a lease. This risk becomes more pronounced during tenant improvements, when spaces are reconfigured, subdivided, or upgraded.
A key source of confusion often lies in the distinction between usable square footage and rentable square footage:
Usable square footage (USF) represents the space a tenant can physically occupy and customize.
Rentable square footage (RSF) also includes a proportionate share of common areas such as lobbies, restrooms, and hallways.
Rent is typically based on RSF, so any miscalculation can lead to disputes over rent or operating expenses can quickly arise.
Reality capture provides accurate dimensions for every wall, corridor, and common area, so property managers have verifiable, timestamped evidence for lease calculations.
Reliable data sources facilitate both reliable revenue projections and greater credibility with tenants, who can see exactly how space is measured and billed.
5. Marketing asset upgrades
Functionality is key when it comes to tenant improvement projects, but perception is equally important. A newly renovated space has to be marketed effectively to attract and retain tenants quickly. Traditional photos or floor plans often fail to capture the full impact of upgrades, leaving potential tenants guessing about how the space feels and functions.
Reality capture elevates marketing by turning spaces into immersive 3D tours that showcase every detail of the finished space. Property managers can highlight new finishes, demonstrate reconfigured layouts, and provide a realistic sense of flow long before an in-person visit. Reality capture models can also generate high-quality photos, floor plans, and videos, giving leasing teams a complete set of marketing assets from a single scan.
Instead of juggling multiple vendors or tools, property managers can use Matterport to generate a full suite of marketing materials directly from the scan:
Virtual 3D tours bring improvements to life online, enriching listings and presentations.
Automatic defurnish allows prospects to imagine alternative layouts or see the space as a blank canvas.
Property Intelligence features automatically generate marketing floor plans, room dimensions, and even ready-to-publish property descriptions.
Capture Services are provided by expert reality capture technicians who scan your spaces for you, providing complete marketing assets in 24-48 hours.
Real-world applications: turning tenant improvements into revenue
For tenants, improvements aren’t just about upgraded finishes. They reshape how people work, shop, and interact with a space every day. A reconfigured office can support new ways of working, while a refreshed retail unit can create a stronger brand experience for customers.
With reality capture, property managers can ensure that every improvement aligns with tenant needs, reduces disruption, and delivers spaces that people genuinely want to use.
Office reconfiguration
The shift to hybrid and flexible work has made office reconfiguration one of the most common tenant improvement projects. Tenants want layouts that balance collaborative spaces with private areas, often requiring partitions, new meeting rooms, or redesigned common areas. These changes can be very disruptive to business operations if they are not planned with precision.
By examining a reality capture model before work begins, property managers and tenants can explore different layout options virtually. Progress scans can also document renovations and help to coordinate vendors step by step, minimizing disruption for existing occupants.
The result is a smoother transition into a redesigned office that better supports how teams actually work.
Retail space optimization
Retail tenant improvements are focused on creating an environment that drives customer engagement and sales. From reconfiguring store layouts to highlight merchandise to upgrading lighting, signage, or accessibility features, these projects directly influence how customers experience the brand.
With 3D models of units, retail stakeholders can test different layouts virtually, confirm that fixtures or displays fit as intended, and plan upgrades without repeated site visits. Scans can also document brand-specific modifications across multiple locations, ensuring consistency in rebranding efforts.
The DCMS team incorporated Matterport into their reality capture workflow to capture more than 40 Balenciaga stores across the Americas as part of a project to roll out optimizations across their retail spaces. Watch the Matterport webinar to learn more:
Acquisitions and rebranding
When properties change hands, whether through acquisition, portfolio expansion, or tenant turnover, rebranding and improvement projects are often needed to bring spaces in line with new standards. This can involve updating signage, refreshing interiors, or making compliance upgrades across dozens or even hundreds of locations. Coordinating these efforts without accurate documentation can lead to inconsistent execution and disruption to working teams who may already be feeling the strain of business changes.
During its acquisition of Bank of the West, BMO used Matterport digital twins to document branches across its new portfolio. Teams could remotely evaluate existing conditions, plan rebranding improvements, and coordinate signage and finishes without repeated site visits — accelerating the rebrand while reducing disruption to working teams.
“With the BOTW acquisition, we had a hard deadline. By engaging Matterport to scan the BOTW branches, at a low cost, we were able to save time and resources by eliminating multiple branch visits by various teams and vendors.” – Lisa Near, Senior Manager of Process Improvement, BMO
Watch the BMO webinar for more insights.
Compliance and accessibility upgrades
In some facilities, compliance and accessibility aren’t optional improvements. They’re urgent, business-critical requirements. The stakes vary by industry, but the risks of falling short are universal: penalties, lost certifications, or even putting people at risk.
Gyms and fitness centers: locker rooms must meet ADA standards, accessible equipment layouts are required, and entryways need to support all users. Noncompliance can block memberships or trigger fines.
Laboratories: fire exits, fume hood placement, and hazardous material storage must be documented and verified. Mistakes can jeopardize safety certifications and research funding.
Manufacturing facilities: floor markings, emergency egress, and machine spacing must comply with OSHA and fire codes. Failure to comply can halt operations or increase liability in case of accidents.
Healthcare centers: hallway widths, ramp inclines, door clearances, and fixture placement directly affect patient mobility and regulatory accreditation. Gaps can delay inspections or expose facilities to lawsuits.
Reality capture creates a verifiable record of these conditions and upgrades, ensuring improvements are executed to spec and fully documented for future audits or inspections. For tenants and users, this means safer, more accessible spaces.
