Gym’s offer free trial memberships in order to entice new patrons. Beer companies offer free t-shirts or hats as a way to sweeten the deal when buying a case of their product. We all appreciate a good old fashioned consumer incentive, don’t we? Landlords also offer incentives along the same lines in order to attract prospective tenants to fill vacant office spaces, and navigating these negotiations is a hugely important aspect of lease agreements.

The most coveted landlord incentive is the tenant improvement (TI) allowance - an agreed upon amount the landlord is willing to pay for to renovate or retrofit the space for a tenants specific needs. Typically, TI agreements are inked with per-square-foot parameters, or alternatively, a lump sum amount - but key to understanding this incentive is knowing it’s decided during lease negotiations.

Lease negotiations often include talks about who ultimately gets to decide on a final design, who does the work, and who pays for it all