Looking To Lease A Commercial Space? What You Should Know About Tenant Improvement Allowances
Posted on: 2 December 2017
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If you are looking to lease a commercial space, you may have come across the term tenant improvement allowances. If you have never heard of this term before, you may find yourself wondering what this is, how it can be beneficial to you and how much money you can get for an allowance. Here is what you need to know about tenant improvement allowances:
What Are Tenant Improvement Allowances?
Tenant improvement allowances are often offered as part of the commercial leasing terms. The owner of the property will provide the individual or company leasing the space a certain amount of money to make improvements or changes to the space so that the space can be used for your business purposes. This may include money that can be spent on replacing the floors, painting the walls, adding in shelving or even adding in salon chairs or massage tables, based on the type of business you have. An allowance is a great incentive to get people to rent a certain space.
Why is a Tenant Improvement Allowance Beneficial to You?
Without a tenant improvement allowance, you will have to pay for all of the changes you make to the commercial space out of your own pocket. The higher the allowance, the more changes you can make to the space and the more customized you can make the space be, ensuring it works well for the type of business you have.
How Much Money Can You Get For an Allowance?
The amount of money you can get for a commercial tenant improvement allowance varies based on many factors. If the commercial rental market is slow in your town, higher allowances may be offered. If the market is stable, lower allowances may be offered. Additionally, many owners or leasing agents base the amount of your allowance based on the length of your lease. The longer you sign a lease for, the higher the allowance will be. This provides you incentive to stay put and ensures them that the money is well-spent as it helps them retain those who rent from them.
If you are looking to customize the commercial space you are looking to rent, always look for a company that offers tenant improvements allowances as part of the lease contract. This provides you with the money you need to make your commercial space unique for your business without having to pay for this expense out of pocket.