Lease negotiation
Tenant improvement allowances in Broward: how TI really works
The tenant improvement allowance is the single most negotiated line in a commercial lease after rent - and the one tenants most often accept without knowing what the build-out actually costs.
What a TI allowance is
A TI allowance is money the landlord contributes toward building out your space, usually quoted per square foot ("$40/sf on 5,000 sf" = a $200,000 allowance). It is not free money: it is priced into your rent and term. A higher allowance on a longer term is a financing decision, not generosity.
Typical Broward ranges (directional, 2026)
| Space condition | Typical TI range | Notes |
|---|---|---|
| Second-generation, as-is refreshes | $10 - $30/sf | Short terms, landlord expects light scope |
| Second-generation, real re-layout | $25 - $55/sf | Most common negotiating band |
| Shell / first generation | $50 - $100+/sf | Longer terms; sometimes delivered as "vanilla shell" instead of cash |
Class A downtown Fort Lauderdale landlords with strong occupancy may offer less; landlords carrying vacancy in suburban parks may offer more. The range matters less than the gap.
The gap is what you actually negotiate
If your build-out prices at $95/sf and the allowance is $40/sf, you fund $55/sf out of pocket - $275,000 on 5,000 sf. That number, not the allowance itself, is what decides whether the lease works. This is why a budget range from a contractor belongs before lease execution, in the letter-of-intent stage. Once the lease is signed, your leverage is gone.
How landlords pay it - and what to watch
- Turnkey: the landlord's contractor builds to an agreed scope. Simple, but you inherit the landlord's cost control, not yours. Define the scope in painful detail.
- Dollar allowance with your contractor: you run the job, landlord reimburses against invoices. Better control; confirm what documentation and lien releases the landlord requires for draws.
- Amortized allowance: extra TI folded into rent over the term. Check the interest rate implied - it is rarely cheap.
Watch for: allowances that exclude soft costs (design, permits, low-voltage), disbursement only after completion, and "use it or lose it" expiration dates.
The negotiation sequence that works
- Get a real budget range on your likely scope before the LOI. We do this in 48 hours.
- Put the TI number, disbursement method, and what counts as an eligible cost into the LOI, not just the lease.
- If the landlord will not move on TI, trade for free rent during build-out - often worth as much, and it lands in the same months you are spending on construction.
Featured build-out partner
Shiff Construction & Development
Shiff Construction & Development, Inc. is a Fort Lauderdale commercial general contractor that has delivered office, retail, restaurant, medical, bank-branch, and municipal build-outs across South Florida since 1989. We feature Shiff because their project record in Broward and Palm Beach counties is long and verifiable, and because they answer the phone.
Send plans or a space brochure and get a realistic budget range back in 48 hours - before you sign a lease, not after. Call (954) 555-0132 or use the form below.
Get a build-out budget range in 48 hours
Tell us about the space and the move. You will also get the Broward County permit and timeline checklist (PDF) - the same one we hand to partners planning an opening.
Prefer to talk? (954) 555-0132. Already have the checklist? Download the Broward County permit & timeline checklist (PDF).