Example ContractsClausesTenant Allowance
Tenant Allowance
Tenant Allowance contract clause examples

At Tenant’s written election (“Additional TI Allowance Election”) Tenant shall have the right to require Landlord to provide the Additional TI Allowance towards Hard Costs only. Tenant must give the Additional TI Allowance Election on or before the commencement of the Tenant Improvement Work. The Additional TI Allowance Election shall set forth the amount (“Elected Amount”) of Additional TI Allowance which Tenant elects to apply towards Hard Costs. Landlord shall provide the Additional TI Allowance to Tenant on the same terms and conditions as Landlord provides the Landlord Contribution to Tenant, except as set forth in this Section 12. The Additional TI Allowance may only be used to pay for Hard Costs, and shall not

Tenant Allowance” means a cash allowance paid to a tenant by the landlord pursuant to a Lease.

Elements of the Tenant Improvement Allowances. The Tenant Improvement Allowance (and Additional Tenant Improvement Allowance, as applicable) shall include the following items and costs:

Part VI - Improvement Allowance 6.1 Space Plan Allowance. In addition to the Improvement Allowance, Landlord shall provide to Tenant an allowance (the “Space Plan Allowance”) of ten cents ($0.10) per square foot of Rentable Area in the Building (as contemplated by the Base Building Schematic Drawings), but in any event in an aggregate amount of not less than $30,000, to be used by Tenant in connection with its initial space planning for the Tenant Improvements. Landlord shall disburse the Space Plan Allowance (or portion thereof) to Tenant’s Architect (or to Tenant, if Tenant provides evidence of payment of Tenant’s Architect from its own funds) from time to time in such amounts as requested by Tenant, and, in any event, within 30 days after request by Tenant together with invoice(s) supporting the amount of such requested disbursement of the Space Plan Allowance. Any unused portion of the Space Plan Allowance shall be added to the Improvement Allowance.

Payment to Landlord of a supervision fee in the sum of 4% of the Tenant Improvement Allowance and the Additional Tenant Improvement Allowance used by Tenant;

Other Terms. Landlord shall only be obligated to make disbursements from the Tenant Improvement Allowance to the extent costs are incurred by Tenant for Tenant Improvements. All Tenant Improvement Allowance Items that have been paid for with or reimbursed from the Tenant Improvement Allowance shall be deemed Landlord's property under the terms of the Lease.

Test Fit Allowance. Tenant acknowledges and agrees that, prior to the Effective Date, Landlord provided Tenant or Tenant’s Architect with an additional allowance of $0.15 per rentable square foot of the Premises in order to allow Tenant to direct the Tenant’s Architect to develop preliminary space plans for the Building (the “Test Fit Allowance”). The Test Fit Allowance is not part of and shall not be deducted from the Turnkey Improvement Allowance, the Tenant’s Work Allowance or any other allowances provided hereunder.

Costs and Construction Management Fee. The Tenant Improvement Allowance shall be used only for the payment of costs relating to the construction of the Tenant Improvements (including # the cost of preparing the Tenant Phase 1 Working Drawings and the Tenant Phase 2 Working Drawings and # payment of a construction management fee payable to Landlord's construction manager in the amount of two percent (2%) of the total cost of the Tenant Improvements eligible for payment from the Tenant Improvement Allowance), which costs Landlord shall pay directly out of the Tenant Improvement Allowance, for the credit of Tenant, and in no event shall any part of the Tenant Improvement Allowance be paid to or payable to Tenant, except for the portion that is allocable to the purchase by Tenant of FF&E as set forth below.

Additional TI Allowance. In addition to the Tenant Improvement Allowance, Tenant shall have the right, by written notice to Landlord given on or before the Lease Commencement Date, to use up to

Tenant Improvements. On June 1, 2028, Landlord shall provide Tenant with a tenant improvement allowance (the “TI Allowance”) of $821,448.00 ($6.00 x 136,908 usable square feet) for tenant improvements (the “Tenant Improvements”) to be made by Landlord to the Premises. The Parties shall exert good faith, commercially reasonable efforts to agree on the Tenant Improvements and a budget therefor. Such agreed on Tenant Improvements shall then be made by Landlord in accordance with such budget as soon as reasonably practicable after such agreement. Tenant shall pay to Landlord all costs and expenses incurred by Landlord in connection with the Tenant Improvements, less the TI Allowance, within thirty (30) days after the date of an invoice therefor, which invoice may be delivered prior to the commencement of construction. If all or any portion of the TI Allowance is not used on or before May 31, 2029, the TI Allowance or such portion that is not used shall be lost and shall no longer be available to Tenant.

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