The Cauble Group

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016. Tenant Improvement Allowances (What They Are and How They Work)

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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.


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Episode 6: Tenant Improvement Allowances (What They Are and How They Work) The Commercial Real Estate Investor Podcast


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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.

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