{
  "url": "https://classa.info/topics/us-tia-strategy",
  "title": "US TIA Strategy",
  "description": "How to negotiate, draw down, and account for US tenant improvement allowances (TIA).",
  "oneSentenceAnswer": "US tenant improvement allowance (TIA) is the most important non-rent economic in a US Class A lease — typically USD 80–150/sf for 7–10 year terms, drawn down on construction-progress milestones, and structured as cash (not landlord-in-kind) wherever possible.",
  "tldr": [
    "Typical: USD 80–150/sf for 7–10 year US Class A terms; trophy reaches USD 150–250/sf.",
    "Negotiate as cash, not landlord-in-kind delivery — gives vendor control.",
    "Draw down on construction-progress milestones (typically 4–6 stages).",
    "Excess TIA amortises into rent at 6–8% — model as rent in effective-rent comparison.",
    "TIA is contractually rent — owed even on early termination unless explicitly carved out.",
    "Bundle TIA with abatement; landlords trade between the two on relative value."
  ],
  "faqs": [
    {
      "question": "How much TIA is typical?",
      "answer": "USD 80–150/sf for 7–10 year US Class A. Trophy and longer terms reach USD 150–250/sf."
    },
    {
      "question": "Cash or in-kind?",
      "answer": "Cash, almost always — gives vendor control and prevents landlord markup."
    },
    {
      "question": "How does excess TIA amortise?",
      "answer": "Typically into rent at 6–8% interest over the lease term. It is contractually rent and owed even on early termination unless explicitly carved out."
    },
    {
      "question": "Can TIA cover FF&E?",
      "answer": "Negotiate it explicitly. Default lease language often restricts to hard construction; expand to AV/IT, FF&E, and consultants."
    },
    {
      "question": "Is TIA taxable?",
      "answer": "Typically not under IRC § 110 if structured correctly. Always confirm with tax counsel before signing."
    }
  ],
  "keyFacts": {
    "spokeGuides": 3,
    "spokeGlossary": 6,
    "spokeTools": 3,
    "cityCoverage": 29
  },
  "pageType": "topic-pillar",
  "lastUpdated": "2026-05-29T16:17:29.065Z",
  "license": "CC BY 4.0 with attribution to Class A Atlas (https://classa.info).",
  "citation": "Source: Class A Atlas (https://classa.info/topics/us-tia-strategy), updated 2026-05-29T16:17:29.065Z."
}