Tenant improvement allowance calculator.
Check whether the landlord's buildout allowance actually covers the work needed to open. The dangerous gap is the cash you must fund yourself before the business has stable revenue.
Use this for: retail, restaurant, office, medical, salon, warehouse, and small-business commercial spaces.
Total buildout—
Allowance—
Cash shortfall—
Effective monthly buildout drag—
Free rent credit—
Opening cash pressure—
What to check before accepting a TI allowance
A tenant improvement allowance is not the same as free cash. Ask when it is paid, what it covers, whether landlord approval is required, whether permits and professional fees count, and who owns the improvements after you leave.
- Ask whether the allowance is reimbursed after completion or credited during the project.
- Ask what happens if costs exceed the allowance.
- Ask who controls contractors, permits, inspections, delays, and change orders.
- Ask whether unused allowance can reduce rent or disappears.