Which of the following does not describe Tenant Improvements (TIs)?

Which of the following does not describe Tenant Improvements (TIs)?

• A. The improvements a tenant leaves behind after vacating their space
• B. A fee paid to commercial real estate brokers for facilitating a lease transaction
• C. Costs to customize a leased space for the tenant before move-in
• D. Improvements funded by the landlord to improve building efficiency

Answer: (A)

Tenant Improvements are the build-out work done to customize a leased space for a tenant’s use, usually completed before they move in and often funded by the landlord as a TI allowance or by the tenant as part of the lease. They cover changes needed for occupancy—finishes, walls, lighting, electrical, and similar upgrades—and can also include improvements funded by the landlord to improve building efficiency. The description that does not fit TI is improvements left behind after the tenant vacates, since TI are meant to prepare the space for occupancy, not changes retained after the lease ends.

Tenant Improvements are the build-out work done to customize a leased space for a tenant’s use, usually completed before they move in and often funded by the landlord as a TI allowance or by the tenant as part of the lease. They cover changes needed for occupancy—finishes, walls, lighting, electrical, and similar upgrades—and can also include improvements funded by the landlord to improve building efficiency. The description that does not fit TI is improvements left behind after the tenant vacates, since TI are meant to prepare the space for occupancy, not changes retained after the lease ends.