List of
Leasing Terms
Defined in this Glossary


Glossary of Real Estate Leasing


Icon for Tenant Improvement Allowance definedIcon for definition of Tenant Improvement AllowanceIcon for Tenant Improvement Allowance definition

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.

Glossary Image: Tenant Improvement Allowance DefinedIntro Image: Definition of Tenant Improvement AllowanceIntro Image: Tenant Improvement Allowance Defined


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.