Tenant improvements (TI)
Changes made to a space to fit a tenant's needs, such as walls, flooring and wiring. Landlords often offer a TI allowance per square foot, which is negotiated as part of the lease.
Also called: TI, TIs, TI allowance, tenant improvement allowance, build-out
Related terms
The fixed rent in a commercial lease before any added charges like CAM, taxes or percentage rent. It is usually quoted per square foot per year and often rises by set amounts over the term.
A short document outlining the main terms of a proposed lease or purchase, such as price, rent, term and contingencies, before a full contract is drafted. Most of it is usually non-binding.
A project where a developer builds a property to a specific tenant's needs, and the tenant signs a long-term lease or buys it at completion. Common for retail chains, distribution centers and medical users.
A contract between a landlord and tenant that sets the rent, term, deposit and rules for using a property.
Property used for professional and administrative work, from small suites to high-rise towers. It is graded by class, leased by rentable square foot, and often uses full service gross leases.