During the execution of a commercial lease, most tenants want to remodel the property. Tenant Improvement Allowance, also known as TI, is usually part of a lease agreement. Tenant Improvements are the specific accommodations that the building owner makes to the property, before a particular tenant moves in. Say for instance, a tenant wants to turn a warehouse into an office space; changing of the lighting, flooring, doors and other features of the property are things that are considered TI.
Tenant Improvement Painting Services
All American Painting provides quick and dependable painting services for all commercial and residential tenant improvement projects. As a fully bonded, licensed and insured commercial painting contractor, we provide a variety of painting applications. All American Painting always guarantees clean and professional service.
Some of our services and products include:
- Faux Finish
- Special Coatings
- Fire Retardant Paint
- Safety Paints (hazard indicators)
At All American Painting, we believe in honesty and hard work. This allows us to offer the best quotes in our area. There's no project too big or small for us to tackle.
We know you are busy, so we don't waste materials or time when completing the job. This means that we plan each contract to be executed with maximum efficiency.
Guarantees and regular maintenance programs are available to all of our customers. If you have any questions about our tenant improvement painting services, or want to get a free quote, contact us and we'll give you a consultation.
Tenant Improvement Allowances
Tenant improvement allowances are negotiated between the lessor and the lessee, and are transferred via cash or landlord amortization. This negotiation is stated in dollars per square feet. Typically the painting and carpeting fees run a lessee around $8-10 per square foot, on the low end of the spectrum.
The negotiated rental rate and the length of the lease term, have a significant impact on the amount of TI allowance. Construction costs that exceed the balance of the TI allowance are owed by the lessee. This occurrence is commonly known as "paying out of pocket." It's important to budget your TI allowance accordingly, so you have enough to spend on other TI related costs. Let's explore the different types of TI allowances:
Lump Sum TI Allowance
Typically the tenant allowances in lump sums are measured by square footage. A lessee moving to a new office space might get a $50 per-square-foot TI allowance. With a space of 4,000 square feet, $200,000 would go toward build-out costs.
TI Allowance Alternative Concessions
In lieu of TI's a landlord may offer "free rent," which is basically a credit towards rent. This option saves the tenant and the landlord money, and can be beneficial for everyone involved.
Non-Monetary Credit for TI Allowance
Some landlords may choose to credit work they will do for the tenant at signing,instead of TI allowance. New carpeting and paint are offered as a non-monetary TI allowance; this practice is easier on the landlord because the tenants will have improvements made, and it saves money for the landlord.