---
title: "Subdivision cost — Class A Atlas glossary"
description: "Capex required to subdivide a single floor for multiple tenants."
canonical: https://classa.info/glossary/subdivision-cost
pageType: glossary
lastUpdated: 2026-04-01T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> Capex required to subdivide a single floor for multiple tenants.

## TL;DR

- Capex required to subdivide a single floor for multiple tenants.
- When a landlord subdivides a full floor for multiple tenants, additional capex is required (corridors, demising walls, separated MEP, restrooms).

# Subdivision cost

*Construction · US*

## Short definition

Capex required to subdivide a single floor for multiple tenants.

## Full definition

When a landlord subdivides a full floor for multiple tenants, additional capex is required (corridors, [demising walls](/glossary/demising-walls), separated MEP, restrooms). Often passed through to the tenant as part of the TI calculation or absorbed by the landlord depending on covenant strength.

## Why this matters for Class A leasing

Subdivision cost is part of the construction vocabulary that institutional [Class A](/glossary/class-a) occupiers, landlords, and advisers use across US markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks the US definition alongside the global standard so [cross-border](/topics/cross-border-expansion) occupiers can translate quickly.

## See also

- [Tenant improvement allowance (TI / TIA)](/glossary/tenant-improvement-allowance)

---

Citation: Source: Class A Atlas (https://classa.info/glossary/subdivision-cost), updated 2026-04-01T00:00:00.000Z.