Calculateur d'Allocation d'Améliorations Locatives
Calculez l'allocation d'améliorations locatives pour votre bail.
Total TI Allowance
$225,000
Total TI Allowance vs Lease Term (years)
Formule
## Tenant Improvement Allowances A tenant improvement (TI) allowance is money the landlord provides to the tenant for customizing or building out the leased space. It is a standard incentive in commercial leasing. ### How TI Allowances Work 1. The landlord offers a dollar-per-square-foot allowance 2. The tenant designs and constructs improvements to suit their needs 3. Costs within the allowance are covered by the landlord 4. Costs exceeding the allowance are paid by the tenant 5. The landlord amortizes the TI cost over the lease term as part of the return calculation ### Typical TI Ranges - **Office (new build)**: $40-$80 per sq ft - **Office (refresh)**: $15-$35 per sq ft - **Retail**: $20-$50 per sq ft - **Industrial**: $5-$15 per sq ft ### Negotiation Tips - Longer lease terms justify higher TI allowances - Strong-credit tenants get better TI packages - TI is essentially a loan baked into the rent, not free money
Exemple Résolu
5,000 sq ft space with $45/sq ft TI allowance, estimated $65/sq ft buildout cost, 7-year lease, 8% landlord amortization rate.
- 01Total TI allowance: 5,000 x $45 = $225,000
- 02Total buildout cost: 5,000 x $65 = $325,000
- 03Tenant out-of-pocket: $325,000 - $225,000 = $100,000
- 04Allowance coverage: $225,000 / $325,000 = 69.2%
- 05Monthly amortization: approximately $3,493 (at 8% over 84 months)
- 06Total amortized cost: $3,493 x 84 = $293,412
Questions Fréquentes
Is the TI allowance free money?
No. The landlord factors the TI cost into the base rent calculation. A higher TI allowance typically means higher rent. The landlord amortizes the TI at their target return rate (7-10%) over the lease term. The total cost to you, through higher rent, exceeds the TI amount.
What happens to improvements when the lease ends?
In most leases, tenant improvements become the property of the landlord when the lease expires. Some leases require the tenant to remove certain improvements and restore the space. Always review the surrender clause in your lease carefully.
Can I negotiate a higher TI allowance?
Yes. TI allowance is one of the most negotiable terms in a commercial lease. Leverage includes a longer lease commitment, strong credit, taking a larger space, and competitive offers from other buildings. You can also negotiate a cash allowance in lieu of TI to cover moving costs.