The TI allowance is always negotiable and there is no set average, because it will vary widely on building condition and tenant requirements. However, the owner may want to ensure that whatever the amount, the lease compensates the TI within a certain period. On a 5 year renewal, I've not approved a TI budget that doesn't fully compensate me within 10 months; i.e, $100,000 TI budget for $10,000 per month lease. Again, weigh the benefits of how strong the tenant is, if improvement to the unit can be utilized after the tenant is gone, etc.
Sep 19, 2014