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TI Allowance Calculator

Understand the true cost of tenant improvements

Calculate TI allowance economics including amortization schedules, effective rent impact, and TI versus free rent comparisons.

AmortizationDisbursementEffective rentTI vs. free rent

Runs locally · Nothing is saved or sent to a server

The reality

TI allowances are a core negotiation point

Every office and retail deal involves tenant improvement discussions. Understanding the landlord's true cost and the tenant's effective rent requires modeling that's currently done in ad-hoc spreadsheets.

  1. Every deal involves TI discussions

    Tenant improvement allowances are a core negotiation point in office and retail leasing. Understanding the true cost requires careful modeling.

  2. Hidden economics

    The real cost of a TI allowance depends on amortization rate, lease term, and whether costs are recaptured through higher rent.

  3. TI vs. free rent trade-offs

    Tenants and landlords often debate TI allowances versus free rent periods without modeling which structure is actually more favorable.

Capabilities

What you can calculate

  1. Total allowance calculation

    Calculate total TI allowance from per-square-foot amounts and premises size, with disbursement schedules.

  2. Amortization schedules

    Generate amortization schedules for landlord-financed TI, showing principal, interest, and monthly payment amounts.

  3. Effective rent impact

    See how TI concessions affect effective rent, the true cost per square foot after accounting for landlord investment.

  4. TI vs. free rent comparison

    Compare the economic impact of TI allowances against equivalent free rent periods for both landlord and tenant.

  5. Cost per square foot analysis

    Break down total concession packages on a per-square-foot basis for standardized deal comparison.

  6. Landlord & tenant cost analysis

    See total cost from both perspectives, including NPV calculations using the amortization discount rate.

At your service

TI provisions, drafted automatically

LeasePilot generates complete tenant improvement provisions including allowances, disbursement schedules, and work letters.