Tenant Improvement Allowances (What They Are and How They Work)
Today, we’re going to be talking about tenant improvement allowances when leasing commercial real estate: what are they and how do they work? If you have ever started a search for commercial real estate, you likely know that your new space will require some form of build-out. It’s almost guaranteed. Whether you are searching for retail, office, or industrial property, it is important to plan for construction and the costs that are associated with retrofitting a space.
Although looming construction costs can be intimidating, tenants have the option to push for a tenant improvement allowance in order to help mitigate the costs associated with a build-out.
Tenant improvement allowances, also known as TI, TIA, or TA, are a pre-negotiated sum of money that a landlord will provide the tenant in order to cover all or a portion of costs to build out the space.
About Your Host:
Tyler Cauble, Founder & President of The Cauble Group, is a commercial real estate broker and investor based in East Nashville. He’s the best selling author of Open for Business: The Insider’s Guide to Leasing Commercial Real Estate and has focused his career on serving commercial real estate investors as a board member for the Real Estate Investors of Nashville.
Each week, I'm going live at 8:30am CST for my "office hours" to answer your questions about commercial real estate on the show. Let's hear what you'd like to know when it comes to brokerage, investment, and development!