The construction work done to customize a leased commercial space for a specific tenant.
Tenant Improvement refers to the construction work performed to customize a commercial space to meet a tenant's specific requirements, typically within a base building shell provided by the landlord. TI work commonly includes partitions, ceilings, flooring, lighting, HVAC distribution, and restrooms. A Tenant Improvement Allowance (TIA) is an amount provided by the landlord to offset the cost of TI construction, with the tenant responsible for costs exceeding the allowance.
A law firm receives a $75 per square foot TI allowance from the landlord and builds out 8,000 square feet of office space including a conference room, reception, and private offices.
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