Property Management

A Seattle commercial landlord offers a 'tenant improvement allowance' (TI) to a new tenant as part of a lease negotiation. A TI allowance is:

AA reduction in the monthly rent to cover the tenant's existing improvements
BMoney the landlord agrees to contribute toward the cost of tenant-customized improvements to the leased space✓ Correct
CA requirement that the tenant restore the space to original condition at lease expiration
DA security deposit credit toward the first month's rent

Explanation

A Tenant Improvement (TI) allowance is a landlord contribution toward the cost of customizing the leased space for the tenant's specific use. It is typically expressed as a dollar amount per square foot and is a key negotiating point in commercial leases.

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