The duty of the tenant to remove improvements and restore the space upon exit.
By Angel Campa, Founder · Updated March 2026
Restoration costs can range from $10 to $40 per RSF depending on the extent of improvements that must be removed. A 10,000 RSF space with extensive custom build-out could face $100,000-$400,000 in restoration costs at lease end. If this obligation is missed during abstraction, the tenant has no time to budget, negotiate a waiver, or find a replacement tenant willing to assume the improvements.
Found in the "Surrender" or "Restoration" section near the end of the lease. May also be referenced in the work letter. Look for language about "removing alterations," "restoring to original condition," or "returning the premises in shell condition."
Lextract uses a combination of AWS Textract OCR and Claude AI to identify and extract the restoration obligation from your lease PDF. The AI searches for all pages of the document, then assigns a confidence score based on OCR quality and extraction certainty. Fields with lower confidence are flagged for human review.
Lextract automatically checks this field against its 15-rule red flag engine. Issues detected for restoration obligation:
TI Allowance
The total monetary subsidy provided by the landlord for space customization.
TIA per RSF
The improvement allowance calculated on a per-square-foot basis.
Landlord's Work
The specific construction obligations the landlord must complete prior to possession.
Tenant's Work
The scope of construction the tenant is responsible for managing and funding.
HVAC Responsibility
Identifies whether the landlord or tenant is responsible for replacing HVAC units.
Yes, particularly if the improvements enhance the space's marketability. Landlords often waive restoration for standard office improvements (carpet, paint, standard partitions) but require removal of specialized installations (commercial kitchens, server rooms, medical equipment). This should be negotiated at lease signing.
Most leases require restoration before or on the expiration date. Starting too late can push the tenant into holdover, triggering penalty rent. Tenants should budget 4-8 weeks for restoration and begin planning at least 6 months before lease expiration.
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