Quote:
Originally Posted by Soterik
Is there any factor of tenant improvements you do mid lease? I can't find anything online that indicates anything a "percentage" annually or anything like that. I've helped her in the past on a lighting upgrade (2 years ago).
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Typically, TIs are negotiated prior to signing the lease, and from an owner/landlord's perspective, it's usually based on the length and type lease (as well as the tenant worthiness/reputation/solvency). In other words, if a national/corporate tenant approaches you to lease out your vanilla-shell space for 10 years NNN, but wants standard office build-outs, it is a much easier pill to swallow than if some unknown small biz tenant wants the same TIs, but is only looking to go 2 years MG.
In your situation, the only way I would consider any (significant) TIs would be with an extended lease and/or higher monthly rent, and/or higher yearly increases (or going NNN if it's currently MG). That said, happy tenants are usually good tenants. So if you want to be a nice(r) guy, I guess you could negotiate some sort of rent credit if they do their own TIs. However, I'd want to have full control/approval of what they intend to do (and require receipts/invoices for work done).
Whatever you do, make sure to put it in writing.
