How Tenant Improvement Allowances Work And How to Maximize Yours!
Why TIAs Are Critical
The Triangle is booming with biotech, healthcare, and tech startups—but very few spaces are move-in ready. TIAs often determine whether a lease is financially viable.
What TIAs Cover
Walls, ceilings, and flooring.
Electrical, HVAC, and plumbing modifications.
ADA compliance upgrades.
What They Don’t Cover
Furniture.
IT cabling and equipment.
Moving costs.
How to Maximize Your Allowance
Hire a Tenant Rep Broker – They negotiate TI alongside rent.
Get Competitive Bids – Ensure allowance aligns with actual construction costs.
Negotiate Alternatives – Free rent, escalated allowances, or phased build-outs.
Prioritize Value-Add Upgrades – Spend on things that improve workflow and longevity.
Local Market Insight
In RTP, TI allowances for lab space often exceed $100/SF, reflecting specialized needs.
For Class A office in Raleigh’s Glenwood South, landlords typically offer $40–60/SF.
Medical tenants in Cary often see higher allowances due to build-out complexity.
Final Thoughts
TIAs aren’t “free money”—they’re part of the negotiation. But with the right broker, they can transform an ordinary lease into a growth opportunity.