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Tenant Improvement Allowance...what should you know?

May 4, 2017

The tenant improvement allowance (TIA) is the amount a landlord is willing to spend so that the tenant can retrofit or renovate the office space. It is usually expressed in a per-square-foot or total dollar sum. This amount is decided upon during lease negotiations.

 

Tenant goals during the negotiations should be to 1) get an allowance sufficient to cover planned improvements, and 2) maintain a high amount of control of the build-out.

 

Don’t let your landlord tell you that your TIA is a concession or a gift. If the work you’re doing constitutes capital improvements (improving the building in a way that will benefit any future tenant), the work may be something that by rights the landlord ought to pay for. But even if the work is truly specific, in response to your tastes or unusual business requirements, and the landlord has nevertheless ponied up some cash, don’t be fooled—you can be sure that landlords peg their rent demands high enough to compensate them at least in part for the TIA they’re paying you.

 

LSE Builders Group is here to help in this process. Tenant build outs require a commercial remodeling contractor who specializes in commercial tenant improvements. Whether it's a simple remodel, a major renovation, or new construction, LSE Builders Group will finish your project on time, within budget, and with professional craftsmanship.

 

Our tenant build out contractors will manage the project from start to finish, providing exceptional service and complete peace of mind. In addition, we will act as a connection between the landlord and the tenant to ensure smooth construction and transition schedules, and to make sure that the final product meets with the satisfaction of all parties.

 

 

 

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