Property Management

A Kentucky commercial landlord negotiating a 'build-out allowance' is offering:

APermission to construct any improvements the tenant desires
BA financial contribution toward the cost of tenant improvements to customize the space✓ Correct
CA rent reduction for the first year
DA construction loan to the tenant

Explanation

A tenant improvement (TI) allowance (build-out allowance) is a contribution from the landlord toward the cost of customizing the space to meet the tenant's specific needs.

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