tenant improvement allowance

tenant improvement (TI) allowance

A negotiated sum a landlord is willing to spend to customize space for the needs of a particular tenant. For second-generation space—that with walls, doors,ceiling tiles,lighting,and electrical already in place because of a prior tenant—the offered TI allowance will typically be enough to replace worn carpets and wallpaper, paint walls, freshen up some cabinetry, and move a minor number of walls and doors. For first-generation space—brand new space—the TI allowance is often insufficient to complete construction with even the most inexpensive quality of components.Construction expenses in excess of the TI allowance must be paid by the tenant.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
By knowing the parameters of your tenant improvement allowance, understanding how architects work, memorizing basic unit prices, and staying focused, you will conduct better space planning meetings.
In addition to the sales price, Griffin is assuming responsibility for approximately $2 million in future tenant improvement allowance.
Fit-up (also known as renovations, tenant improvement allowance, or up-fit) is a standard expense of an office lease.
In addition to the sales price, Griffin is assuming responsibility for approximately $7 million in future tenant improvement allowance and commission obligations.
Virtually every commercial property lease involves some form of incentive, whether in the form of a tenant improvement allowance, "rent holiday" or other concession by the owner or manager.
As seen in line 12, the owner of Building One is providing a standard tenant improvement allowance of $18 per square foot.
This can result in many benefits for the tenant, including a few months of free rent, a greater tenant improvement allowance, or even a reduction in the base rent.
"A majority of the firm's employees live in Brooklyn so the attractive deal terms, substantial tenant improvement allowance combined with the REAP Incentive program made Brooklyn an overwhelmingly strong choice for them," said Ted Rotante, senior managing director at FirstService Williams, who acts as the exclusive broker for the tenant.
General contractor sourcing: licensed, bonded, and insured, in accordance with landlord tenant improvement allowance (TIA) reimbursement provisions, who have solid references.
Onyx Center has space starting at 1,099 square feet for lease and the building features extensive perimeter and site landscaping, high visibility and access to Overland Road, consistent architecture throughout the park, minimum 5/1,000 parking ratio, and a generous $40/sf tenant improvement allowance on first generation space.
First generation space that has never been built out for a tenant will result in the user having to spend additional money above the landlord's tenant improvement allowance to complete the build out.
On smaller spaces, where for the past two years I would say it was expected that the landlord would do a whole build to suit a tenant, now landlords are claiming that they want to get out of the construction business and just go back to giving a tenant improvement allowance and letting the tenant build the space themselves.