Should Landlords Pay for TI's?

Posted by: Garrett K.

Rofo users call us asking what landlords will typically provide in the form on tenant improvements. Here's what you can expect:

Retail Space
Most retail spaces are delivered in "as is" condition, meaning that the electrical and plumbing both work and the space is ready for business. It can be difficult to negotiate much of a contribution from the owner/landlord to complete your improvements that are needed for your business. If the improvements would be needed for any tenant, like an ADA bathroom, then make sure to ask for them up front as costs can increase quickly. However, in these current economic times, tenants may have more leverage when negotiating the TI's.

Industrial Space
Make sure the roof doesn't leak and your power needs are provided for with the current infrastructure. If the current infrastructure is not adequate, ask for the desired improvements in the first offer. Once those major issues are out of the way, improvements usually occur in the office area or for a restroom installation.

Office Space
For most small businesses, the biggest issue with a space is the necessary term of the lease. If you want to do a month- to-month or one-year lease, the landlord will rarely provide much in the form of improvements. If you are signing a lease for two or more years, there are opportunities to ask for new paint and carpet, or the reconfiguring of the exisitng office layout.

For any space, make sure to ask that the space is delivered clean with good looking paint and carpet. Please email sales@rofo.com with any specific questions.

Last updated: 04.29.2009 04:28 PM