The term Tenant Improvement (TI) refers to customizations or build outs made to a leased space to meet the tenant’s specific needs. These improvements are often funded by the landlord up to a negotiated Tenant Improvement Allowance or Turnkey Tenant Improvement and may include modifications to the interior layout, finishes, or other aspects designed to tailor the space for the tenant’s operational requirements.
It is important to carefully manage the design, cost and the party responsible for the TI prior to completing Letter of Intent (LOI) Negotiations. Poorly handled TI inserts major risk for Tenants.