What Is a Tenant Improvement Allowance?
When leasing a commercial space, many tenants require modifications to make the property functional for their business needs. A Tenant Improvement Allowance (TIA) is a financial contribution from the landlord that helps cover the cost of renovations. At 303 Construction, we specialize in commercial tenant improvements in Denver, helping businesses maximize their TIA while creating a space that aligns with their brand and operational needs.
How Does a Tenant Improvement Allowance Work?
A TIA is typically negotiated as part of the lease agreement. It is usually calculated in one of two ways:
- Per square foot – Example: A landlord offers $30 per square foot for a 2,000 sq. ft. space, providing a $60,000 budget for renovations.
- Lump sum – A fixed amount designated for improvements, regardless of space size.
What Does a TIA Cover?
Tenant improvement allowances generally cover:
- Interior build-outs (walls, flooring, ceilings).
- Plumbing and electrical work.
- Lighting and HVAC modifications.
- ADA compliance upgrades.
However, TIAs do not typically cover furniture, décor, or specialty equipment.
How 303 Construction Maximizes Your TIA
At 303 Construction, we help businesses maximize their allowance by:
- Providing detailed cost estimates to align with the landlord’s budget.
- Recommending cost-effective materials and designs.
- Ensuring that renovations comply with lease agreements and city codes.
Need help navigating your Tenant Improvement Allowance? Contact 303 Construction today to ensure your commercial renovation is done efficiently and affordably!