Why do I have to pay up front for construction costs on a leased space?

You may be required to pay certain costs up front on a leased space for several reasons:

Security deposit: The landlord may require a security deposit to cover the cost of any damages to the space that may occur during the construction process or lease term.

Protection of property: The landlord may want to ensure that the space is returned to its original condition at the end of the lease, and the up-front payment helps to ensure that the tenant has the funds to pay for any necessary repairs.

Improvements: If you are making improvements to the space, you will likely either be paying your own GC or construction team for those improvements, or the landlord (if that is part of the agreement).