Let’s talk about TI — Tenant Improvement dollars. I’m allergic to it. Sure, I’ve given it. But only when it makes strategic sense. Why? Because when a tenant asks for TI, my first question back is: “How much is it going to cost YOU to open?” If a tenant’s total project is $100K and they only have $30K to their name? 🚩
TI is not a gift card. It’s an investment — and I’m not putting in more than you are. If you’re spending $50K and asking me for $50K, we might talk. But if you expect me to turnkey your entire buildout? I’m not your landlord.
If I do give TI, I wait until you’ve opened, I’ve got your certificate of occupancy, and you’ve paid your first rent check. No mid-construction draws — I’m not your bank. And if you’re getting TI, you better be giving a strong guarantee. Why? Because if you flake mid-demo and I’m left with a torn-up space, I want recourse.
One more thing — I don’t do full free rent. Half base + full CAM at most. Why? Because teaching tenants not to pay rent for months? That’s a habit I’m not in the business of starting.
Bottom line: TI should be earned, not assumed. Be smart. Be strategic. Be like a Rockstar.