Have you found the perfect space for your business, but just need to make a few improvements? You might need to do anything from changing the flooring to upgrading the electrical wiring, all of these things are known as Tenant Improvements.
About Tenant Improvements
All different kinds of spaces might need tenant improvements. You could be renting a completely unfinished space, called a shell space, or a space that is mostly unfinished but includes lighting and HVAC systems, which is called a warm shell space. Standard space is finished, but could still potentially require improvements. The last kind of potential space improvements are custom finishes, which could include things like unique designs or luxury or specialty materials.
Why You Should Negotiate for Tenant Improvements
From the perspective of a landlord, long-term tenants investing in improvements that will be useable for future tenants is a smart business decision because it will increase the value of the space and allow them to charge higher rent. Therefore, if you are a tenant with good credit requesting general improvements, your landlord might be inclined to give you a Tenant Improvement Allowance or Tenant Improvement Credit, which is a fixed dollar amount given by the landlord to the tenant for improvements.
Don’t let a few improvement issues with a space prevent you from leasing it, talk to your landlord about your improvement options!