When negotiating a commercial lease, one of the most important questions is who is responsible for paying for tenant improvements (TI). The answer depends on the lease structure, the condition of the space, current market conditions, and the terms negotiated between the landlord and tenant.

Typically, landlords are responsible for the base building and core systems, while tenants fund improvements specific to their business. Many leases include a Tenant Improvement (TI) Allowance to help offset build-out costs, but expenses beyond that allowance are often the tenant's responsibility unless otherwise negotiated.

Understanding these responsibilities before signing a lease can help avoid unexpected costs, improve budgeting, and lead to more favorable lease terms. Whether you're leasing office, medical, retail, or industrial space, knowing how tenant improvements are structured is essential to making informed real estate decisions.

At Godino & Company, we help landlords and tenants negotiate commercial leases that protect their interests and maximize value. If you're considering leasing commercial space or have questions about Tenant Improvement Allowances, our team is here to help.

Contact us today:

• Phone: 617-965-4200
• Website: www.godinoco.com