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Don’t get screwed.</text><text x="58" y="258" font-family="Arial,Helvetica,sans-serif" font-size="30" font-weight="600" fill="#6b5b4d">Leases, TI, NNN &amp; buildouts — negotiated in your favor</text><g transform="translate(1010,86)" fill="none" stroke="#C0531F" stroke-width="9" stroke-linejoin="round"><rect x="20" y="40" width="150" height="130"/><line x1="20" y1="40" x2="95" y2="6"/><line x1="170" y1="40" x2="95" y2="6"/><rect x="50" y="80" width="36" height="36"/><rect x="104" y="80" width="36" height="36"/><rect x="74" y="128" width="42" height="42"/></g></svg>

How Do I Get Tenant Improvement Money on a Lease Renewal?

Direct Answer

You ask for it, in writing, before you mention staying. The single biggest mistake tenants make is signaling they're happy where they are — the moment a landlord knows you won't move, your leverage evaporates and the TI allowance goes to zero. Play it the other way: get a competing offer in hand, then demand a renewal tenant improvement (TI) allowance of $10–$40 per square foot depending on market and remaining lease length.

Here's the real benchmark. On a new lease, landlords routinely fund $30–$80/sq ft of buildout for office and $15–$50/sq ft for retail/industrial. On a renewal, they fund less because there's no moving cost to recover — but a motivated landlord will still put up $10–$40/sq ft to keep you, especially if your departure leaves them with 6–18 months of vacancy and a fresh round of broker commissions (4–6% of total lease value) and new-tenant TI ($50+/sq ft).

Your job is to make staying cheaper for them than replacing you. A 10,000 sq ft tenant asking for $25/sq ft is requesting $250,000 — and that's often less than the landlord's all-in cost to backfill the space.

The move: secure a real alternative quote, hand your landlord a renewal proposal that includes a specific TI number, and let the math do the talking.

Why Landlords Pay TI on Renewals at All

Vacancy is the most expensive thing in commercial real estate. When you leave, the landlord eats:

• Downtime: 6–18 months of zero rent while they market the space. At $30/sq ft/yr on 10,000 sq ft, that's $150,000–$450,000 gone.
• New broker commissions: 4–6% of the new lease's total value, split between listing and tenant-rep brokers.
• Fresh TI for the next tenant: often $50–$80/sq ft because new tenants want a full reconfiguration.
• Free rent concessions: 1 month free per year of term is a common new-deal giveaway.

Add it up and replacing a tenant in a 10,000 sq ft space can cost a landlord $700,000–$1.2 million all-in. Against that backdrop, writing you a $250,000 renewal TI check to avoid the whole mess is a bargain. Your leverage is the landlord's cost of losing you — quantify it and put it on the table.

How to Set Up the Ask the Right Way

Start 9–12 months before expiration. Renewal leverage is a clock: the closer you get to your expiration date, the weaker you become, because the landlord knows relocating is operationally painful and you're running out of runway.

1. Hire a tenant-rep broker. They're paid by the landlord (commission baked into the deal), so the service is effectively free to you, and they pull comps you can't see. A good rep nets renewal concessions worth 5–15x their effort.
2. Get a real competing proposal. Tour two or three alternative spaces and get written term sheets. You don't have to want to move — you need credible proof that you *can*.
3. Submit a written renewal RFP to your landlord listing your target rent, TI allowance, free rent, and term. Anchoring with a number forces a counter rather than a brush-off.
4. Never say "we love it here." Say "we're evaluating our options for the next term and the economics have to work."

What TI Number to Actually Demand

Calibrate to your situation:

• Cosmetic refresh (paint, carpet, minor): ask $10–$20/sq ft. This is the easy yes — it's cheaper than re-marketing.
• Moderate reconfiguration (some demising walls, updated lighting, new finishes): ask $20–$35/sq ft.
• Heavy buildout (new HVAC zones, full reconfiguration, kitchen/lab): ask $35–$60/sq ft and consider amortizing the overage into rent at 8–10% interest rather than taking it as a rent bump you can't see.

Pro move on amortization: if the landlord offers "we'll do the work and add it to your rent," demand to see the amortization rate. Landlords routinely bury 9–12% interest in amortized TI. Negotiate it down to 6–8%, or better, take the cash allowance and control the construction yourself.

TI Cash vs. Rent Abatement vs. Turnkey

Three ways landlords fund improvements — they are not equal:

Always prefer a cash allowance you control for any real buildout — turnkey deals let the landlord cheap out on finishes and pocket the difference.

Protecting the Money in the Lease Language

Winning the number means nothing if the lease lets the landlord claw it back. Demand:

• Draw schedule, not reimbursement-only. Reimbursement-only forces you to spend $250,000 of your own cash and wait. Negotiate progress draws tied to construction milestones.
• Unused TI converts to rent credit. If you spend less than the allowance, the difference should abate rent — not vanish into the landlord's pocket.
• A hard outside date for the landlord to fund. Tie it to a rent-abatement penalty if they're late.
• Self-help rights: if the landlord doesn't pay a draw, you can offset it against rent.

These four clauses are where deals are won or lost. The CBRE and JLL occupier-services teams will tell you the same: the TI fight isn't the dollar figure, it's the funding mechanics.

FAQ

How much TI can I realistically get on a renewal vs. A new lease? New leases command $30–$80/sq ft for office; renewals typically land at $10–$40/sq ft because there's no relocation cost to offset. The harder your departure is for the landlord, the closer to the top of that range you'll get.

When should I start the renewal conversation? 9–12 months before expiration. Inside of six months your leverage collapses because the landlord knows you can't realistically relocate in time, and relocation is your only real source of power.

Can I get TI money even if I'm not relocating? Yes — but only if the landlord *believes* you might. Get a written competing term sheet even if you have no intention of moving. The credible threat is what funds the check.

What's a fair amortization rate if the landlord finances extra buildout? Push for 6–8%. Landlords often start at 10–12%. Anything above 9% means you're financing your own space at credit-card-adjacent rates — negotiate it down or take cash instead.

Should I take free rent instead of TI? Only if you don't need the buildout. 2–4 months of abated rent is real money, but if your space genuinely needs work, a cash TI allowance you control beats free rent every time.

Sources

• CBRE, "Occupier Services: Lease Renewal Strategy and Tenant Improvement Benchmarks"
• JLL, "Office Tenant Improvement Allowance Trends" (Occupier research)
• Cushman & Wakefield, "Tenant Advisory: Negotiating Renewals in a Tenant-Favorable Market"
• NAIOP, "Office Development and Tenant Improvement Cost Benchmarks"
• BOMA International, "Lease Negotiation and Operating Cost Guidance"
• IREM, "Income/Expense Analysis: Office and Retail Buildings"
• The Tenant Advisor (tenant-rep brokerage), "How to Negotiate TI Allowances on Renewals"