The Dirt Dictionary: ‘T’ is for Tenant Improvement Allowance

Yes, you know this, but this column is a dictionary (of sorts), so let’s define a TIA—tenant improvement allowance—as the amount of money a landlord will give toward preparing a space for occupancy and delve into it.

Typically, a TIA is stated either as a per-square-foot amount or a fixed sum. Any overage is borne by the tenant. The rationale for giving the TIA is to attract quality tenants (especially useful in a soft market). This is also used to finance the overhaul of outdated spaces. The amount is totally negotiable, so tenants are well advised to rely on their savvy local brokers to guide them.

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