When a commercial office or retail space is being leased, and there are going to be improvements made to the space, who is responsible for paying for these improvements, the landlord or the tenant? Unless these are things that the landlord has promised to do, the improvements are known as tenant finish or TI improvements, and they are the responsibility of the tenant. There are a number of ways that landlords and tenants can work out payment arrangements for the improvements, so that the tenant doesn’t necessarily have to pay for everything up front.
One way that tenant finishes in Greenwood Village, CO are paid for is that the total cost is loaned to the tenant by the landlord. The tenant repays the loan through the lease payments, which are increased to reflect the cost of the work that is being done. Arrangements can be made for the lease payments to be lowered once the loan is paid off. Often, landlords will advertise a TI allowance in dollars per foot. Like just about anything in business, and in life, fees and payments can be negotiated so they benefit the landlord, and don’t cause financial distress for the renter.
Many services are available to help tenants improve their rental space. These services include power sweeping, power washing and scrubbing, construction services, and much more. The trained professionals at Common Area Maintenance Services can take care of all kinds of different TI needs, and offer the best rates that are agreeable with both tenants and landlords.
One advantage that potential renters have is a renter’s market. Landlords need tenants, and if they want to have their spaces filled, they will need to make their rental conditions attractive. Obviously, landlords want to get the most money possible, but they do need to keep in mind that the more they charge, the less likely they are to have tenants. Tenants are in excellent positions to negotiate better rental deals, including the cost of improvements to the rental space.
Many of the improvements that tenants want to make can actually increase the value of the space. If they are going to be an added value, and help to entice future tenants, landlords will be more likely to help with the costs, and in many cases, will even pay for the improvements themselves.
