It addresses commitment and risk, which is a large part of it. It does not establish treaty nationality for the investor or the enterprise, the ability to develop and direct, or that the business will be more than marginal. There is no dollar threshold that a build-out satisfies on its own; the spend has to belong to a real operating venture.
Match the premises to the operation described
Walk through the business plan with the lease in hand. Does the zoning and permitted use allow the activity? Is the square footage consistent with the staffing forecast?
Do the licensing requirements for the intended trade attach to this address, and has that application started? Where the plan and the premises disagree, change one of them now. Contradictions between documents are harder to explain than a plainly stated adjustment made before anything is submitted.
Take the business plan and the lease into one meeting and check them against each other line by line. Square footage against headcount, permitted use against the licence required, opening date against the rent commencement, and equipment list against the power and ventilation the premises can supply. Then check the conditions the premises cannot address: treaty nationality for the investor and for the enterprise, capital irrevocably committed and at risk, an enterprise that is more than marginal, and the ability to develop and direct it.
Substantiality is proportional to the cost of the particular business rather than measured against a fixed figure, so a modest build-out is not automatically weak nor a large one automatically sufficient.