Property Management

Iowa's tenant improvement allowance (TIA) in commercial leasing is:

AMandatory under Iowa commercial lease law
BA landlord contribution toward the cost of customizing the leased space to meet a tenant's specific needs✓ Correct
CA tenant's right to make any modifications they choose
DThe IREC's allowance for property managers to charge for improvements

Explanation

A tenant improvement allowance (TIA) is a negotiated landlord contribution to help fund a tenant's build-out costs. The amount, scope, and terms (whether improvements revert to the landlord) are specified in the lease. TIAs are particularly important in commercial leases for new or first-generation spaces.

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