# US TIA Strategy

> 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.

**Canonical URL:** https://classa.info/topics/us-tia-strategy
**Page type:** topic-pillar
**Last updated:** 2026-05-29T16:17:29.065Z
**License:** CC BY 4.0 with attribution to Class A Atlas (https://classa.info).

## TL;DR
- 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.

## Key facts
- **spokeGuides**: 3
- **spokeGlossary**: 6
- **spokeTools**: 3
- **cityCoverage**: 29

## FAQ
### How much TIA is typical?
USD 80–150/sf for 7–10 year US Class A. Trophy and longer terms reach USD 150–250/sf.

### Cash or in-kind?
Cash, almost always — gives vendor control and prevents landlord markup.

### How does excess TIA amortise?
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.

### Can TIA cover FF&E?
Negotiate it explicitly. Default lease language often restricts to hard construction; expand to AV/IT, FF&E, and consultants.

### Is TIA taxable?
Typically not under IRC § 110 if structured correctly. Always confirm with tax counsel before signing.

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Citation: Source: Class A Atlas (https://classa.info/topics/us-tia-strategy), updated 2026-05-29T16:17:29.065Z.