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You may elect to just to pay any costs over the allowance yourself, but its its nice to have that option.In cases, where the scope of work only involves new carpet, paint and moving a wall or two, having more control of the process is not as critical.Every day smart subscribers thank us saying they would have been scammed if they didn't subscribe to Scam Busters. Subscribe FREE to Scam Busters, a public service and the #1 publication on Internet fraud.
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In addition to negotiating a favorable amount for tenant improvements provided by the Landlord, the ability to maintain control of the process is also important.
Tenant Improvement allowances provided by the building owner to build-out or retrofit office space are typically structured in one of two ways: When negotiating a lease, tenants would prefer not to come out of pocket for expenses related to building out the space.
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In addition, I request that the Landlord either waive or reduce their construction management fee, and allow the tenant to retain their own project manager to oversee the design and construction process.
The objective is to shift control of the build-out from the Landlord to the Tenant which provides the ability to: If possible, it is also prudent to negotiate the right to amortize additional tenant improvement dollars into the rent should you decide to add additional improvements, upgrades or incur unexpected cost over-runs before you space is completed.
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For example, if the Landlord estimates the cost of the build-out at .00 per square foot, and that is the allowance the negotiated rental rate is based upon, and ultimately the Landlord is able to build-out the space for .00 per square foot, then the tenant has in effect given up .00 per square foot that could have gone towards improvements to their premises.