When securing a new tenant for a commercial rental property, the owner of the property might incur an additional expense that amounts to the cost of refurbishing the rental space to meet the needs of the tenant's business. The allocation of money for this added expense is more commonly referred to as a(n):

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A tenant improvement allowance is a sum of money that a landlord can allocate to cover the costs of remodeling or renovating a rental space to meet the specific needs of the tenant. This allowance can be negotiated as part of the lease agreement and can vary depending on the extent of the improvements needed or desired by the tenant.

When Securing a New Tenant for a Commercial Rental Property