Did you find the perfect office space but there are two offices in the space that are too small and you want to combine them to make a large executive office? The Tenant Improvement Allowance can help you make sure the layout is perfect for your business.
When you start the process to look for an office space you go through and create a checklist of items that are important factors in determining the best option. You think about location, budget, parking, amenities, etc. As you move down your list you come to what layout will work for best. For example, you need 5 private offices, an open area for 4 cubicles, conference room, and a reception area.
As you start to look for properties that match all your other criteria you will come to find that not every space that is the right square footage, price, and in the best location fits your checklist for the preferred layout. Did you find the perfect space that has too many offices and not enough open area for cubicles, needs to be painted, and needs new carpet? Landlord’s budget that they are going to be spending money on these types of items. In the lease it is called the Tenant Improvement Allowance which means the money that the Landlord is willing to “give” a Tenant to do improvements to the premise. The amount that the Landlord is willing to give will be based on many factors one of which is the length of lease term and items that are requested.
There are situations in which the Landlord will not give you a Tenant Improvement Allowance. For example, on a shorter term lease, a small square footage, if the space was built out as a spec suite, if you do not have strong financials, or if it is a smaller Landlord that does not have the money in their budget.
A common question Tenant’s ask is about the cost of construction. It can be surprising to some to understand this and Kirksey Architecture came out recently with an article breaking it down for commercial construction.
If you are looking for office space, make sure you call SwiftLease so we can help you navigate the leasing process and help to educate and advise you on the these types of items that can be negotiated for you.