Property Management

In commercial property management, 'tenant improvement allowance' (TI allowance) refers to:

AThe landlord's right to improve the property during the lease
BMoney provided by the landlord to help the tenant customize the space for their business use✓ Correct
CA reduction in rent in lieu of improvements
DThe tenant's obligation to improve the property before moving in

Explanation

A tenant improvement (TI) allowance is money provided by the landlord—often as a per-square-foot amount—to help the tenant customize the leased space (offices, fixtures, flooring, lighting). TI allowances are a key negotiating point in commercial leases.

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