Free Tenant Improvement Calculator
Budget tenant improvement costs for a commercial space and calculate the landlord TI allowance coverage and out-of-pocket cost.
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Total TI Cost
$163,680
Landlord Allowance$90,000
Tenant Out-of-Pocket$73,680
Total Cost Per Sqft$54.56
Allowance Coverage %55.0%
Total TI Cost vs Square Footage
Tenant Improvement (TI) Budgeting
Tenant improvements are modifications made to commercial space to suit a tenant's specific needs. Understanding costs and the landlord's contribution is critical for lease negotiations.
Typical TI Costs
Landlord TI Allowance
The landlord typically provides a per-square-foot allowance toward improvements. This is negotiated in the lease and depends on:
Important: TI vs. Rent Tradeoff
A higher TI allowance often comes with higher rent. The landlord amortizes the TI cost into the rent over the lease term.
Example Calculation
3,000 sqft office at $45/sqft TI cost, $30/sqft landlord allowance, 8% architecture fee, $3,000 permits, 10% contingency.
- 01Base TI cost: 3,000 x $45 = $135,000
- 02Architecture fee: $135,000 x 8% = $10,800
- 03Permits: $3,000
- 04Subtotal: $135,000 + $10,800 + $3,000 = $148,800
- 05Contingency: $148,800 x 10% = $14,880
- 06Total TI cost: $148,800 + $14,880 = $163,680
- 07Landlord allowance: 3,000 x $30 = $90,000
- 08Tenant out-of-pocket: $163,680 - $90,000 = $73,680
- 09Allowance coverage: $90,000 / $163,680 = 55.0%