---
title: "Tenant improvement allowance (TI / TIA) — Class A Atlas glossary"
description: "Landlord-funded contribution toward the tenant's fit-out."
canonical: https://classa.info/glossary/tenant-improvement-allowance
pageType: glossary
lastUpdated: 2026-04-01T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> Landlord-funded contribution toward the tenant's fit-out.

## TL;DR

- Landlord-funded contribution toward the tenant's fit-out.
- TI is the largest contractual subsidy in any office lease.

# Tenant improvement allowance (TI / TIA)

*Lease economics · US*

## Short definition

Landlord-funded contribution toward the tenant's [fit-out](/topics/fit-out-capex)">fit-out.

## Full definition

TI is the largest contractual subsidy in any office lease. Current US [Class A](/glossary/class-a) market is $130-$200/sqft on a 10-year deal; trophy lease-ups can push past $250. TI is typically reimbursed against tenant invoices or paid directly to the contractor. Over-allowance spend is amortised into rent at a stated interest rate — negotiate that rate explicitly.

## Why this matters for Class A leasing

[Tenant improvement allowance](/topics/us-tia-strategy) (TI / TIA) is part of the lease economics vocabulary that institutional 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

- [Rent-free period](/glossary/rent-free-period)
- [Core and shell](/glossary/core-and-shell)
- [Cat A](/glossary/cat-a)

## Related guides

- [Tenant improvement allowances: the working guide](/guides/us-tenant-improvement-allowances-explained)

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