When leasing a new commercial space, whether office, warehouse, or retail outlet, modifications called Tenant Improvements (TIs) are often needed to suit your business needs. An example of a tenant improvement can range from simple renovations like installing new flooring, or painting, to major changes like upgrading HVAC systems or additional sections in a leased commercial space. The expenses incurred to make the newly leased building fit for running your business are covered under the Tenant Improvement Allowances (TIAs), forming part of the rental lease agreement with your landlord. In this article, we will explain to you the nature, extent, and coverage of the Tenant improvement allowance. You will get in-depth answers to the frequently asked questions about TIAs in the commercial real estate industry.
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