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Tenant Improvement Allowance (TI)

The Tenant Improvement Allowance refers to modifications made within a commercial property to meet the needs of a new tenant (structural renewal, walls, HVAC, electricity, plumbing, doors, windows, paint, carpet, etc.).

The landlord pays part of the costs of the leasehold improvement allowance. This charge is negotiated between the lessor and the lessee during the negotiation of the terms of the lease.