The improvement allowance calculated on a per-square-foot basis.
By Angel Campa, Founder · Updated March 2026
The per-RSF rate enables apples-to-apples comparison between competing lease proposals with different suite sizes. A $60/RSF allowance on a 5,000 RSF space ($300,000 total) is objectively more generous than a $50/RSF allowance on a 7,000 RSF space ($350,000 total) because the per-unit construction cost is the same regardless of space size. This metric is the standard benchmark used by tenant representatives.
In the "Tenant Improvements" or "Work Letter" section. May be stated explicitly or must be calculated by dividing the total TI amount by the tenant's RSF.
Lextract uses a combination of AWS Textract OCR and Claude AI to identify and extract the tia per rsf 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.
TI Allowance
The total monetary subsidy provided by the landlord for space customization.
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.
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.
Always compare on a per-RSF basis and factor in the lease term. A $60/RSF allowance on a 10-year lease is effectively $6/RSF/year, while $40/RSF on a 5-year lease is $8/RSF/year. The shorter-term lease actually provides more annualized construction value.
It depends on the lease. Most quotes reference RSF for consistency with the rent calculation, but some landlords quote per USF which yields a higher per-square-foot number for the same total amount. Always confirm the measurement basis when comparing proposals.
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