Commercial tenant improvements across California: the Bay Area, Los Angeles, Orange County, San Diego and Sacramento

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Tenant Improvement Guide

What Is a Tenant Improvement Allowance (TIA)?

How landlords fund build-outs in California leases and how to negotiate a better allowance.

General contractor and client reviewing construction documents for an office build-out

The basics

A tenant improvement allowance is money the landlord contributes toward your build-out, usually per rentable square foot, recovered through rent over the lease term.

What it covers

Construction nearly always qualifies; design, permits and project management often do. Furniture, cabling and signs depend on the lease.

Turnkey or allowance

Turnkey deals put cost risk on the landlord; allowance deals give you control of design and construction.

Negotiating in California

  • Price the build-out before negotiating.
  • Ask the landlord to fund path-of-travel accessibility upgrades and HVAC replacement as base building work.
  • Clarify what costs qualify.
  • Ask about converting unused funds to rent credit.

Common questions

Do not see your question? Call and talk to a tenant improvement project manager.

No, it is recovered through rent.

Usually paid by the tenant.

Only usable for rent if the lease allows.

During construction or at completion, per the lease.

Ready to build out your space?

Send the address, square footage and target opening date. A California project manager will walk the space and return a written estimate.