Property Management

In commercial property management, a 'tenant improvement allowance' (TI) is:

AAn annual reduction in rent given to loyal tenants
BMoney provided by the landlord to the tenant to build out or customize the leased space for the tenant's use✓ Correct
CAn allowance for minor maintenance repairs billed to tenants
DA reduction in CAM charges for well-maintained tenant spaces

Explanation

A tenant improvement (TI) allowance is a sum provided by the landlord (typically as part of lease negotiations) to fund the build-out or customization of the leased space to meet the tenant's specific needs — a common incentive in commercial leasing.

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