Tips For Getting The Most Out Of Your Tenant Improvement Allowance

Tips For Getting The Most Out Of Your Tenant Improvement Allowance


When you’re starting a business, expenses creep up on you. Suddenly you’re overwhelmed with bills and you still haven’t opened. Follow our guide to getting the most out of your tenant improvement allowance in order to make sure that improvements on your lease space won’t drag you down.


Although there is not set structure for how a landlord sets a tenant improvement allocation (it could be reimbursement, free rent, or cash) you can still get the most you can out of the arrangement if you come in knowledgeable and prepared for negotiations.


Expert Knowledge

Boutique tenant buildout contractor houston galveston kemah clear lakeNegotiating tenant improvement in your lease can be tough.  In order to be fully prepared you need to know about the current real estate market, have a good understand of construction costs, and be familiar with the city and county permitting necessary. If you’re not knowledgeable in these areas, it makes sense to partner with a company like Putnam Builders before negotiating your lease agreement. The team at Putnam Builders has over 50 years of experience performing tenant build out and improvements and have real estate professionals on staff. Putnam Builders may even be able to help you find the ideal space to lease.



tenant build out contractor general builder boutique restaurant shop contractor galveston bacliff kemahOnce you have expert knowledge at your disposal, you’ll want to fully understand your goals. Start with what you want you space to look like and how it should perform. Consider necessary storage, workflow, and any special electrical or venting you may require. Once you have your ideal space in mind, separate out the necessities from the desires. Then work with Putnam Builders to accurately price out your design.




When negotiating with your landlord, depending on the size and complexity of your tenant improvement, s/he may counter with higher rent, escalators, or a longer-term lease. Be prepared for what you’re willing to settle on. The landlord may want to oversee the construction, which could lead to less desirable finishes and less attention to detail. Decide ahead of time if the landlord overseeing your design will be favorable or if it’s a deal-breaker.

Whatever your design, having an experienced construction and real estate expert at your side will support your overall goals and can help simplify the complexity of your lease agreement and tenant improvement allowance.



Contact Us


Putnam Builders has been building out custom commercial design spaces on the Gulf Coast of Texas and surrounding areas since 1963. We would love the opportunity to discuss your custom tenant improvement goals in our design studio in Bacliff, TX or in the comfort of your own home. Please contact us at 281-339-0838 or request a free consultation.




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