What is a Tenant Improvement (TI) Allowance?
Category:
Commercial Leasing – Tenants & Owner-Users
A Tenant Improvement (TI) Allowance is a financial contribution that a landlord may provide toward improvements needed to prepare the space for a tenant’s business. Depending on the negotiation, the allowance may help offset construction, remodeling, build-out, or other approved improvements.
The amount of any TI allowance often depends on factors such as lease length, market conditions, property type, tenant qualifications, and the scope of the proposed improvements.
Negotiating tenant improvements is often just as important as negotiating the rental rate.