A tenant improvement, or TI, allowance is money a landlord agrees to contribute toward the build-out or customization of a commercial space. It can be a meaningful part of the overall lease package.
The size of a TI allowance often depends on the lease term, tenant credit, condition of the space, market conditions, and the improvements required. Longer commitments may support a larger allowance, but every property and tenant requirement is different.
A contractor estimate gives you a better view of whether the proposed allowance is realistic for the work. It also helps identify long-lead items, permitting needs, and costs that may not be obvious during an initial tour.
The lease should explain what costs qualify, who manages the construction, when the money is available, what happens if costs exceed the allowance, and whether unused funds can be applied elsewhere. Review those points before the deal is finalized.
(689) 407-6831ashley@creaflorida.com
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