Tenant Improvements Allowance (TI)
The dollar amount the landlord contributes toward tenant build-out, and the recapture and amortization terms that often follow.
- TI amount and per-square-foot calculation
- Amortization or recapture structure
- Interest rate on amortized TI
- Ownership of improvements at lease end
If this clause already feels aggressive in isolation, upload the full contract and see how it combines with payment terms, liabilities, and exit rights.
Analyze My ContractWhat this clause actually does
A tenant improvements (TI) allowance is the dollar amount the landlord pays toward tenant build-out (often $20 to $80 per square foot). The terms can include amortization (TI repaid through rent over the term), recapture (TI clawed back if tenant leaves early), and ownership of improvements at lease end.
Why people get burned by this clause
A $50/square foot TI on a 2,500 square foot space is $125K. If amortization is built into rent, the tenant repays it; if it is recapture, early termination triggers a lump sum repayment.
What should make you slow down
- TI amortized into rent at landlord's preferred interest rate
- Recapture clause applies on any termination, including landlord default
- Improvements become landlord property at lease end without compensation
- TI release contingent on landlord-defined milestones
- TI must be used by an unrealistically early date
Where you usually see it
- Commercial leases
- Tenant improvement work letters
- Lease exhibits
What the platform checks in the live contract
- TI amount and per-square-foot calculation
- Amortization or recapture structure
- Interest rate on amortized TI
- Ownership of improvements at lease end
- Release schedule and milestones
What stronger language usually looks like
- TI as outright contribution (not amortized into rent)
- Recapture only on tenant breach termination
- Trade fixtures and removable improvements remain tenant property
- Release on documented expenditure
TI is rent in disguise if it is amortized. Push for outright contribution and clarity on recapture triggers.
See how this clause behaves in the real contract.
The clause library gives you judgment. The full review shows how this clause combines with the rest of the agreement, then quotes the exact language, scores the risk, and explains what to push on next.