Property Management

What is a tenant improvement allowance (TI allowance) in commercial leasing?

AAn allowance for tenant repairs of damages
BMoney provided by the landlord for the tenant to customize or improve the leased space✓ Correct
CA reduction in rent for tenant maintenance
DA bonus for long-term tenants

Explanation

A TI allowance is a sum provided by the landlord to help tenants customize the commercial space to their needs. It may be used for construction, fixtures, or finish improvements.

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