2019 has seen a continuation of tech and media tenants grabbing up available office space in and around Los Angeles. According to commercial brokerage Savills, leasing activity in the second quarter of 2019 reached 5.3 million square feet – a three-year high. Leading this leasing frenzy are companies like Netflix, Amazon, Apple, Facebook, and Google. […]
Many offices, retail buildings, or restaurants consist of nothing more than four walls and a door when a prospective tenant first walks through. A tenant build-out is where this raw space is finished to meet that tenant’s specific needs. But build-outs bring on an array of questions. What type of improvements will be needed? Who […]
If you’re a tenant about to sign a lease term of at least five years, the landlord will likely give you a tenant improvement allowance amount (TIA amount). This TIA from the landlord is generally quoted as a dollar amount per square foot. It should ideally cover most, if not all, of the costs associated […]
Congratulations. You’ve signed a lease. The landlord has given you a Tenant Improvement Allowance and they’ve even agreed to handle every detail of the building out of your new space. Sounds great, right? Perhaps. Here are a few ways to ensure you’re getting the most from your Tenant Improvement Allowance.
Make Sure All Work Is […]
During lease negotiations, a landlord will ask the tenant to present financial statements. This is done to ensure the tenant has the resources to carry out lease obligations. In fact, the review and approval of a tenant’s financials are contingencies in most letter of intent forms. This covers their rear end. Why not cover yours? […]
Office design today plays an integral role in a company’s branding, success, and growth. Modern offices have evolved from the days of soul-sucking high cubicle walls and horrible fluorescent lighting. The workplace today is all about experimentation and breaking from tradition. Today’s employee can be as nomadic as they choose to be – thanks to […]
Tenant improvement allowances (TI allowances) are a significant expense for landlords. Customizing even a smaller space can often cost a landlord up to six figures. As with anything carrying that kind of price tag, a lot gets said about the true value or worthiness of tenant improvements. Some of what gets said simply isn’t true. […]
Tenant improvement allowances (TIAs) are greatly misunderstood. A TIA isn’t a cash advance. It’s an agreement between the landlord and tenant where the tenant gets reimbursed for any tenant improvement construction needed. The intent of this type of tenant build-out is to customize a space for their use. The caveat, however, is certain conditions must […]
Ask For a Cash Allowance Before a TI Allowance
Although they’re basically the same thing, there is one key difference. With a TI allowance, a tenant will usually have to first pay the contractor out of pocket. When construction is complete, they present the landlord with receipts and they’re reimbursed whatever they paid out.
With a cash […]
HOW MUCH WILL A LANDLORD PAY TO HELP CUSTOMIZE A SPACE FOR YOUR USE?
When you’re shopping for a commercial space, very rarely will you come across a location that’s seemingly tailor-made for you and move-in ready. Maybe it’s a great location but the interior hasn’t been upgraded since the 90s? Maybe a wall needs to […]