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Office lease definition

What is tenant improvement allowance?

A landlord contribution toward eligible design, construction or related costs for tenant premises, governed by negotiated conditions.

Updated 2026-09-12
Fast answerA landlord contribution toward eligible design, construction or related costs for tenant premises, governed by negotiated conditions.

Why it matters

The amount, eligible uses and payment timing affect both project cash flow and real lease economics.

What to request

Confirm eligible costs, payment evidence, timing, holdback, tax, expiry, default conditions and unused allowance treatment.

Planning example

Compare the allowance with landlord work, free rent and tenant-funded capital on one timeline. The example organizes arithmetic or evidence only; the transaction documents and facts determine the result.

Related decisions

Connect this term to the area, cost, building, flexibility and document provisions elsewhere in the office decision file.

Evidence boundary: office availability and quoted economics change. Confirm current premises, authority, area, costs, permitted use and documents for the specific transaction. Read the methodology.

Tenant improvement allowance questions

Plain-language answers for Canadian office decisions.

What does tenant improvement allowance mean in an office lease?

A landlord contribution toward eligible design, construction or related costs for tenant premises, governed by negotiated conditions.

Why does tenant improvement allowance matter?

The amount, eligible uses and payment timing affect both project cash flow and real lease economics.