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Tenant improvement allowance is a thing you should know about.
If you work in an office, or are about to return to one, Tenant Improvement Allowance is something that affects you. How? Smart usage of a Tenant Improvement Allowance could make or break your happiness, comfort, and overall wellness in a physical space. Really? Keep reading.
What is Tenant Improvement Allowance?
According to a Loopnet.com article on the subject, “…Tenant Improvement Allowance, (is) known as a TIA or TI. In basic terms, a TIA is a way for landlords to reimburse tenants for modifications or improvements made to a commercial space to make it meet their needs. The allowance is a common incentive offered by landlords as a way to improve and fill empty spaces, and the terms of the allowance are negotiated into the lease.”
Your company’s TIA can be a great tool to utilize if you want to improve a new space you’re moving into or update your current space when your lease is renewed. TIA is usually calculated based off a per square footage amount. So, say you get $20 per square foot for TIA, and you’re moving into a 20,000 square feet space. Now we’re talking! You’ve got $400,000 to spend on improvements.
But here’s the trick: You’ve negotiated a decent amount of money to make updates, but who really controls that money? Just like the dollar amount you get per square foot, control of the budget is something that can be negotiated. In a down commercial real estate market, the company leasing space is in a powerful negotiating position. Safe to say, following the COVID-19 pandemic, companies looking to lease space have a lot of inventory to consider. There’s over the money, and there’s also control over who does the work. Some landlords (especially in smaller properties) will have “go-to” contractors, engineers, architects, and designers. Maybe those people and companies have your best interests, maybe not.
And that’s where Infinity Group comes in.
For any big decision (like spending hundreds of thousands of dollars on an office renovation) options are key. How do you know that you’re making the most of your TIA if you don’t get input from more than one option? Infinity Group is a great solution to consider because we have an integrated team. We handle strategy, architecture, engineering, and construction. Our combined expertise means you will get more for your money. Learn more about our process below, and compare it to the traditional method for completing projects.
Maximizing your TIA looks like this.
But what if my landlord is insisting that I go with their architect or contractor?
Remember that you have choices. No matter the terms of your lease or pressure from your landlord, a conversation with Infinity Group is worth your time and ours. Contact us today. Our expert team specializes in return to office projects, and we can give you insight on the your next best move.