Property Management
What is 'tenant improvement allowance' (TI) in commercial leasing and how does it work?
AA reduction in rent for tenants who improve the property's landscaping
BMoney provided by the landlord to a tenant to customize or build out the leased space to meet the tenant's specific needs✓ Correct
CA government subsidy for small businesses leasing commercial space
DAn allowance given to tenants to hire professional movers
Explanation
A tenant improvement allowance (TI or TIA) is money the landlord provides to help tenants customize their leased space—installing walls, flooring, fixtures, and buildout needed for their business. TI amounts vary by market, property type, lease length, and tenant creditworthiness.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Math Concepts
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