Recovering tenant-improvement spend through a rent uplift over the lease term.

  • Recovering tenant-improvement spend through a rent uplift over the lease term.
  • Where a tenant-improvement allowance is exhausted, the landlord may agree to fund excess fit-out and amortise the cost into the rent at an agreed interest rate (typically 6–8%).

TI amortisation

Leasing · US, UK, EU, APAC

Short definition

Recovering tenant-improvement spend through a rent uplift over the lease term.

Full definition

Where a tenant-improvement allowance is exhausted, the landlord may agree to fund excess fit-out">fit-out and amortise the cost into the rent at an agreed interest rate (typically 6–8%). Amortised TI is contractually rent — it must be paid even on early termination unless explicitly carved out.

Example

USD 50/sf excess TI amortised at 7% over 10 years adds USD 7.10/sf/year.

Why this matters for Class A leasing

TI amortisation is part of the leasing vocabulary that institutional Class A occupiers, landlords, and advisers use across US, UK, EU, APAC markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks regional variation alongside the global standard so cross-border occupiers can translate quickly.

Related topics

  • Class A Lease Negotiation — How to negotiate a Class A office lease — the playbook from LOI to signed deal.
  • Fit-out Capex — How to budget, sequence, and govern Class A office fit-out capex.
  • US TIA Strategy — How to negotiate, draw down, and account for US tenant improvement allowances (TIA).