Tenant Installation Allowance refers to an allowance afforded to the Tenant by the Landlord in order to fit out and modify a leased space to make it more suitable to the Tenant’s specific needs. This allowance is typically used for carpets, tiles, partitioning, electrical/IT work and painting.

What are tenant installations?

Tenant Installation Allowance refers to an allowance afforded to the Tenant by the Landlord in order to fit out and modify a leased space to make it more suitable to the Tenant’s specific needs. This allowance is typically used for carpets, tiles, partitioning, electrical/IT work and painting.

What is included in tenant improvements?

These include changes to walls, floors, ceilings, and lighting, among others. In actual practice, these customized tenant improvements usually have a useful economic life of 5 to 10 years, which spans the average commercial lease term.