Commercial Tenant Improvement Allowances
Commercial TIA: key economic lease term. Factors: market, lease term, credit, space condition, and tenant size. Typical: office $30-$80/SF, retail $1-$50/SF, industrial $5-$1/SF. Accounting: landlord capitalizes + amortizes; tenant: capitalize or lease incentive. Tax: 15-year depreciation or bonus. Disputes: scope, overruns, quality, timing, and unused portions. Lease should clearly address each issue.
Negotiation Factors
- Market, lease term, credit
- Space condition, tenant size
- Typical ranges by type
Accounting
- Landlord: capitalize, amortize
- Tenant: depreciate or lease incentive
- Tax: 15-year or bonus
Disputes
- Scope, cost overruns, quality
- Timing, unused portions
- Clearly address in lease
Related Terms
- TIA — General
Barnes Walker Commercial RE
Barnes Walker’s attorneys negotiate commercial TIAs in Florida. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 83, Part II
The Florida Residential Landlord and Tenant Act governs lease agreements, security deposits, maintenance obligations, and the eviction process.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC