The Dirt Dictionary: ‘T’ is for Tenant Improvement Allowance

Yes, you know this, but this column is a dictionary (of sorts), so let’s define a TIA—tenant improvement allowance—as the amount of money a landlord will give toward preparing a space for occupancy and delve into it.

Typically, a TIA is stated either as a per-square-foot amount or a fixed sum. Any overage is borne by the tenant. The rationale for giving the TIA is to attract quality tenants (especially useful in a soft market). This is also used to finance the overhaul of outdated spaces. The amount is totally negotiable, so tenants are well advised to rely on their savvy local brokers to guide them.

Click here to read the entire article in The Commercial Observer.

Jeffrey A. Margolis, Principal

11 East 44th Street (between Fifth Avenue and Madison Avenue)
Suite 1505
New York, New York 10017
Phone: (212) 490-0900
Fax: (212) 490-0700
mail@margolislawfirm.com

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