Bell Road Office Park › Guides › TI allowance explained

What is a TI allowance?

Money the landlord puts toward building the space out for you. TI stands for tenant improvement. Instead of you paying to move walls, add offices or update finishes, the landlord contributes a sum toward that work. At 3033 W. Bell Road the landlord is offering an aggressive TI allowance, and the amount is set in conversation rather than published.
TItenant improvement
Landlord paystoward your buildout
Negotiabletied to term and scope
Call for detailsthe number is a conversation

Why nobody publishes the number

A TI allowance is usually quoted per square foot, and it moves with the deal. A five year lease earns more than a two year lease, because the landlord has longer to recover the investment. A tenant who needs plumbing and exam rooms is a different scope than a tenant who needs paint and a door. That is why the listing says call for details rather than printing a figure that would be wrong for most people who read it.

What you should do is arrive with a number of your own. Get a rough quote for the work you actually need, then ask what the landlord will contribute toward it and over what term. Now you are negotiating about a real scope instead of trading vague adjectives, and you will find out quickly how aggressive the allowance really is.

Bell Road Office Park, a renovated single-story office building in north Phoenix

Quick questions

What does a TI allowance usually cover?

Interior construction: walls, doors, flooring, paint, electrical, sometimes plumbing and HVAC modifications. It generally does not cover your furniture, your equipment or your signage, though signage is worth asking about separately.

Do I get the money directly?

Usually not. The landlord typically pays contractors directly, or reimburses you against invoices once the work passes inspection. Ask how it is administered before you sign, because that affects your cash flow during the buildout.

What is the allowance at 3033 W. Bell Road?

The listing says the landlord is offering an aggressive tenant improvement allowance and to call for details. Bring your scope and your term to the conversation and Robert can tell you what it looks like for your deal.