Property ManagementIntermediateDelaware Exam

What is 'tenant improvement allowance' (TIA or TI) in Delaware commercial leasing?

ASimply a modest rent reduction given only to tenants who choose to improve the property entirely on their own
BA landlord's contribution toward the cost of customizing the leased space for the tenant's specific useCorrect
CA government grant for commercial tenants making energy improvements
DA property tax reduction for tenants who improve commercial property

Why A landlord's contribution toward the cost of customizing the leased space for the tenant's specific use Is Correct

Answer B: A landlord's contribution toward the cost of customizing the leased space for the tenant's specific use

Tenant improvement allowance (TIA/TI) is an amount the landlord contributes toward customizing the leased space for the tenant's specific needs — such as building out offices, installing specialized equipment, or reconfiguring floor plans. TI allowances are a common negotiating point in commercial leases and are often paid as a reimbursement or a credit against rent.

Exam Tip: Property Management

Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.

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