A form of inducement typically seen in office, retail, and industrial real estate, tenant improvements (TIs) are physical changes to a tenant’s leased space to accommodate the specific needs of the tenant. TIs may include building or moving interior walls or partitions, floor covering, shelves, windows, doors, bathrooms, etc. The cost and who bears responsibility for the work is a negotiation between the tenant and the landlord. TIs are generally quoted as an amount per square foot (or per square meter). They are most often are offered at the beginning of a newly signed, or newly renewing lease.
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