Property Management
What is 'tenant improvement allowance' (TIA or TI) in Delaware commercial leasing?
AA rent reduction given to tenants who improve the property on their own
BA landlord's contribution toward the cost of customizing the leased space for the tenant's specific use — a common lease incentive in competitive commercial markets✓ Correct
CA government grant for commercial tenants making energy improvements
DA property tax reduction for tenants who improve commercial property
Explanation
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.
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