Property Management
What is 'tenant improvement' (TI) allowance in a Delaware commercial lease?
AA rent reduction for tenants who improve the property themselves
BA landlord contribution toward the cost of customizing a commercial space for the tenant's specific needs✓ Correct
CAn allowance for the tenant to sublet unused space
DA tax credit for tenants who make energy improvements
Explanation
A tenant improvement allowance (TI or TIA) is a sum the landlord agrees to contribute toward the cost of customizing the leased space to meet the tenant's specific operational needs, often a key negotiating point in commercial leases.
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