Property Management

What is 'tenant improvement allowance' (TI allowance) in Rhode Island commercial leasing?

AA rent reduction for tenant improvements
BA landlord's contribution toward customizing the leased space to the tenant's specific needs✓ Correct
CA security deposit held for repairs
DA clause allowing the tenant to sublet

Explanation

A Tenant Improvement (TI) allowance is a landlord-provided sum of money used to build out or customize commercial space to meet the tenant's specific operational needs. It is a common negotiating point in commercial leases.

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