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In the Spotlight: Tenant Improvement Allowance — Two Perspectives

How a tenant is permitted to apply its tenant improvement allowance for its build-out is frequently a controversial topic during lease negotiations.

4 minute readOctober 06, 2004 at 01:37 PM
By
William Crowe
In the Spotlight: Tenant Improvement Allowance — Two Perspectives

How a tenant is permitted to apply its tenant improvement allowance for its build-out is frequently a controversial topic during lease negotiations.

From the landlord's perspective, the landlord is “giving” an allowance to the tenant in order to finance the tenant's construction of certain improvements to the landlord's space. These improvements are theoretically beneficial to the landlord at the end of the tenant's lease term.

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