Tenant Improvement Dollars

When evaluating a lease document for TI dollars there are numerous components to track and be aware of. The ultimate dollar value receives the most scrutiny, but it is also important to review what costs are eligible for TI reimbursement, what happens to unused amounts and what prerequisites must be cleared before a Tenant is eligible to receive reimbursements from the Landlord.

The Tenant's goal is to derive the maximum benefit with the fewest restrictions to be received as early as possible. The Landlord is seeking to contribute as little as is required, protect their interest in the property and delay making any dispersal for as long as possible.

Landlord's can require lien waivers, COIs, occupancy permits, inspector approval or other control points be completed before reimbursing the Tenant for capital expenditures. If there is a time limit for the reimbursement, 60 days or 180 days from a given benchmark for example, the Tenant must be sure to complete all required steps by the stated deadline or risk losing the TI amount.