Property Management

In commercial property management, a 'build-out allowance' or 'tenant improvement allowance (TIA)' represents:

AThe tenant's right to expand the leased space
BFunds provided by the landlord for the tenant to customize the space to their specifications✓ Correct
CA credit given to the tenant for bringing new subtenants
DThe maximum amount the tenant may spend on improvements

Explanation

A tenant improvement allowance (TIA) is money provided by the landlord as an incentive, allowing the tenant to build out or customize the space. It reduces the tenant's upfront cost and is a key negotiating point in commercial leases.

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