Tech companies are constantly evolving with their needs frequently changing. Whether you’re committing to your first office or expanding into a larger space, leasing a new workplace is a significant step and a sizable investment.
A valuable resource in taking this step is a Tenant Improvement Allowance (TIA). A TIA is a sum of money provided by a landlord to help a tenant renovate or customize a leased commercial space. It commonly includes elements like flooring, walls, lighting, millwork, and infrastructure upgrades.
The amount offered can vary based on factors such as lease length, market conditions, and local vacancy rates. The specifics of the allowance, including eligibility, scope, and how the funds are paid, are negotiated as part of the lease agreement.
See our full Tenant Improvement Allowance guide here.
Why Choose a Tenant Improvement Allowance?
Customizing your leased space to suit your business needs not only improves functionality and accommodates for operational requirements but also supports brand alignment and employee satisfaction.
The main advantage of a Tenant Improvement Allowance is that it reduces the upfront capital burden, allowing you to spread the cost of construction over the lease term or another negotiated period. In essence, you’re financing the construction through your rent.
Tips for Maximizing Your Tenant Improvement Allowance
The terms of a TIA are negotiated between the tenant and the landlord before leasing a space. You typically only receive one TIA per lease, so it’s important to make it count. Many tenants use the terms of the TIA as a key factor when deciding between spaces.
Considerations for getting the most out of your TIA:
Use a Leasing Agent
Leasing agents are typically involved in the process and are a great resource when negotiating TIA terms. A good agent will understand market conditions and leverage vacancy rates to your advantage.
Long-Term Value
Landlords appreciate long-term value and understanding this can help your negotiations.
Landlords are more likely to offer higher TIAs for long-term leases.
Propose quality improvements that increase the space, not just for you, but for future tenants too. Research design trends and amenities that are in demand and demonstrate how your improvements benefit the property overall.
Understand Your Needs
Not all spaces are created equal, and some spaces will work better for your needs. Engaging a construction partner early allows you to evaluate options with greater clarity.
The right construction partner can:
Assess construction costs across different options
Test the feasibility of different spaces for your needs
Strategically plan for future growth and technical infrastructure
At Reotech we offer honest, practical guidance backed by 35 years experience renovating offices across Greater Vancouver. If you’re planning for a new office space, get in touch and our team will help you feel more informed and confident about your decision.