Calculate the TI funding gap
Multiply the negotiated allowance and estimated build-out cost by the applicable area, then compare the totals. The difference shows estimated unused allowance or tenant funding before exclusions and timing rules.
- Total allowance equals applicable square feet multiplied by allowance per square foot
- Estimated project cost equals applicable area multiplied by build-out cost per square foot
- Tenant funding gap is project cost less available allowance, floored at zero
- Allowance eligibility and reimbursement timing come from the lease
Model amortized additional allowance
Some landlords fund an additional amount and recover it through rent. This calculator estimates a level monthly payment using the entered rate and amortization term.
- Separate base allowance from amortized additional funding
- Confirm the interest convention and payment timing
- Review soft-cost, furniture, cabling, and permit eligibility
- Track deadlines and documentation required for reimbursement
Key takeaways
- Total TI allowance can be estimated as applicable area multiplied by negotiated allowance per square foot.
- The tenant funding gap equals estimated eligible project cost less available landlord funding when positive.
- An amortized allowance estimate depends on principal, rate, payment frequency, and term.