Property Management

A Michigan commercial lease 'tenant improvement allowance' (TI allowance) is:

AA rent discount for the first year
BMoney provided by the landlord to help the tenant build out or customize the space to their needs✓ Correct
CAn allowance for the tenant to manage their own utility costs
DA security deposit waiver

Explanation

A tenant improvement (TI) allowance is money the landlord contributes toward the cost of customizing or improving the leased space for the tenant's use. It is common in Michigan commercial leases and may be structured as a rent credit or direct payment.

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