Property Management

A New Mexico commercial tenant with a 'build-out allowance' lease provision receives:

APermission to build a new building on the property
BFunds from the landlord to customize the tenant's space for their specific use✓ Correct
CA rent reduction for making improvements
DAn option to purchase the property

Explanation

A tenant improvement (TI) allowance or build-out allowance is money the landlord provides to help the tenant customize the leased space. It is a common lease concession in commercial real estate.

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