A Tenant Improvement Allowance is full or partial funding a landlord provides for a tenant to improve or update a commercial space. Often, Tenant Improvements Allowances are measured by dollars per square foot. You may currently be a tenant that wants to make some improvements in the space that you are renting. Normally, the Tenant is the one paying in full for the project. Afterwards the landlord should reimburse the cost in either periodic installments, a full sum at the end of the project or the landlord may also award a set of months as “free rent” so the tenant can use that extra money to pay for updates to the office space.
Before signing the lease it’s important that you understand what the tenant improvements will cost because the landlord will agree to only cover the cost of $xxx amount. At J&M we can help you set up the expectations of cost and work that needs to be done so you are able to set the right cost from the beginning. The team at J&M advises you to get a quote before signing a lease in order to have the right idea of what the finish out cost will be AND how much of the tenant improvements the landlord is willing to pay for.