Landlord-funded contribution toward the tenant's fit-out.
Lease economics · US
Landlord-funded contribution toward the tenant's fit-out">fit-out.
TI is the largest contractual subsidy in any office lease. Current US Class A market is $130-$200/sqft on a 10-year deal; trophy lease-ups can push past $250. TI is typically reimbursed against tenant invoices or paid directly to the contractor. Over-allowance spend is amortised into rent at a stated interest rate — negotiate that rate explicitly.
Tenant improvement allowance (TI / TIA) is part of the lease economics vocabulary that institutional Class A occupiers, landlords, and advisers use across US markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks the US definition alongside the global standard so cross-border occupiers can translate quickly.