Tenant Improvement (TI)

Tenant Improvements (TI), also known as leasehold improvements, refer to the customized alterations and enhancements made to a rental space to meet the specific needs and preferences of a tenant. These modifications can include changes to the layout, installation of new fixtures, upgrades to lighting and flooring, painting, and other renovations that tailor the space to the tenant’s operational requirements. Tenant improvements are often negotiated as part of the lease agreement, with landlords either covering the costs up to a certain allowance or amortizing the expenses over the lease term. TI allowances enable tenants to create a functional and aesthetically pleasing work environment without the upfront capital expenditure, while landlords benefit from attracting and retaining tenants who are invested in the property.