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today were gonna be talking about tenant improvement allowances when leasing commercial real estate what are they and how do they work if youve ever started a search for commercial real estate you likely know that your new space will require some form of build-out almost guaranteed whether youre searching for retail office or industrial property its important to plan for construction and the cost associated with retrofitting that space although looming construction costs can be intimidating tenants do have the option to push for a tenant improvement allowance in order to help mitigate those costs associated with the build-out tenant improvement allowances also known as ti-ti a or ta are pre-negotiated sums of money that a landlord will provide to the tenant in order to cover all or a portion of the costs to build out the space TI is typically expressed as a price per square foot amount for example if a landlord is offering $20 per square foot on a 2500 square foot space the landlor