A negotiated sum the landlord provides to help the tenant customize or renovate the leased interior space. It is usually calculated as a specific dollar amount per usable square foot.
TI allowances are a key incentive for signing long-term leases, defraying high upfront construction costs like building walls, installing flooring, or routing HVAC ductwork. A $50/USF allowance on a 10,000 USF space means the landlord contributes up to $500,000 toward the tenant build-out. Disbursement is governed by detailed work letters requiring architect certificates and lien waivers from contractors before the landlord releases funds. Some leases allow unused TI funds to be converted into free rent, but only if the lease contains explicit conversion language.
Lextract extracts these fields directly from your lease PDF:
How tenant improvement allowances work, typical ranges by market and property type, negotiating tactics, deadlines to protect, and how TI affects lease accounting.
The 8 key leverage points tenants have in commercial lease negotiations, and how to use each one to secure better rent, TI, CAM caps, and flexibility provisions.
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.
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