Property ManagementIntermediateDelaware Exam

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 needsCorrect
CAn allowance for the tenant to sublet unused space
DA tax credit for tenants who make energy improvements

Why A landlord contribution toward the cost of customizing a commercial space for the tenant's specific needs Is Correct

Answer B: A landlord contribution toward the cost of customizing a commercial space for the tenant's specific needs

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.

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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