More commonly referred to as “TI”, a Tenant Improvement Allowance is money allotted to a tenant for use on improvements to the property. Tenant improvements typically cover the following:

Flooring

Addition/Deletion of Rooms

Painting Walls

Addition of Pony Walls

Tenant Improvements are typically calculated on a per sq. ft basis and can range from a few cents to several dollars depending on the length of the lease and the quality of the building.

As a rule of thumb, expect at least the equivalent of one month’s lease allocated to TI's.