Definition of Tenant Improvement Allowance
A “Tenant Improvement Allowance” (or “TI Allowance”) is funds contributed by the lessor/landlord toward Tenant Improvements. The funds may be paid directly to the tenant, or may be paid to the contractor doing the work. The amount may be a specific dollar amount or may be a price per square foot. If the cost of the improvements exceed the T.I. Allowance, the tenant must pay the deficiency.
DISCLOSURE: Some of the definitions of leasing terms in this glossary have been tailored to reflect the common practice in the leasing of smaller-sized commercial properties in Northern California. These definitions are not intended to be the legal definitions that would typically be used in a legal proceeding.