By MUST Development
A tenant improvement allowance is money the lease sets aside for the tenant’s work. It is a lease term, not a construction bid.
The work letter says which items the allowance pays for and which items the tenant pays above it. Typical questions are demolition, mechanical changes, finishes, and whether furniture or data cabling is included.
How it is paid also sits in the lease: a lump sum, a reimbursement against invoices, or a landlord-built turnkey. Read that section before you treat the allowance as cash in hand.
Negotiate the work letter before you sign if the allowance does not cover the plan you need. A pre-lease plan review can show the gap. It does not replace the lease.
Costs and timelines vary by building, finish level, and scope. Request an estimate for project-specific figures.