The scope of construction the tenant is responsible for managing and funding.
Also known as: Initial Alterations, Fit-out
By Angel Campa, Founder · Updated March 2026
Tenant work defines what the tenant must build and pay for beyond the TI allowance. Understanding the full scope prevents budget overruns that can derail store openings and create cash flow crises. If the lease categorizes certain items as tenant work that are normally landlord obligations (like fire sprinkler modifications or ADA compliance), the tenant faces unexpected costs that can reach $30-50/RSF.
In the "Work Letter" exhibit alongside landlord work. Look for "Tenant's Work" or "Tenant Improvements" definitions. The construction schedule, approval requirements, and contractor restrictions are typically in the same section.
Lextract uses a combination of AWS Textract OCR and Claude AI to identify and extract the tenant's work from your lease PDF. The AI searches for the field name and common aliases like "Initial Alterations", "Fit-out" across 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 tenant's work:
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.
Restoration Obligation
The duty of the tenant to remove improvements and restore the space upon exit.
HVAC Responsibility
Identifies whether the landlord or tenant is responsible for replacing HVAC units.
Most leases require landlord approval of the general contractor and sometimes major subcontractors. Some leases restrict the tenant to using the landlord's preferred contractors, which can increase costs. Tenants should negotiate the right to solicit competitive bids from at least 2-3 pre-approved contractors.
Yes. Nearly all commercial leases require the tenant to submit plans and specifications for landlord review before beginning construction. The lease should specify a reasonable review period (typically 10-15 business days) and state that approval shall not be unreasonably withheld.
What accuracy can you realistically expect from AI lease abstraction tools? We break down field-level accuracy rates, where AI excels, where it struggles, and how to validate output.
Compare the top AI lease abstraction tools for commercial real estate in 2026. We review Lextract, Prophia, Kolena, Leasecake, MRI Software, and more — with pricing, accuracy, and use-case guidance.
Free AI lease abstraction tools are fast and easy — but they have real limitations. Here is what free tools deliver, what they miss, and when you need structured output instead.
Upload your lease PDF and Lextract will extract tenant's work along with 98 other structured fields in minutes. Just $20 per lease.
Upload Your Lease