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Separate Landlord Allowance from Tenant Build-Out Cost

Reconcile allowance, landlord work and tenant build-out instead of quoting only dollars per square foot.

ft²
currency/ft²
currency
currency
months

Allowance amount

Tenant funding gap

Total landlord support

Allowance per lease month

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How the calculation works

Inputs5 visible fieldsRuleCalculatorPrimary outputAllowance amount

How to Use This Tool

Reconcile allowance, landlord work and tenant build-out instead of quoting only dollars per square foot. Calculate tenant improvement allowance, tenant funding gap and monthly lease-equivalent support from editable deal assumptions.

The decision this tool supports

A headline allowance per square foot does not show whether the tenant's actual scope is funded or how landlord work is classified. This page keeps the decision bounded to allowance amount and the supporting outputs shown beside it. Tenant Improvement does not import an account, infer a market rate, or silently substitute an industry average.

Measured inputsNamed formulaDecision outputs
$40 per ft² across 2,000 ft² creates an $80,000 allowance; with $15,000 separate landlord work and a $110,000 budget, the tenant gap is $15,000.

Inputs and units

The Tenant Improvement calculation uses Rentable area, Allowance, Landlord work outside allowance, Tenant build-out budget, Lease term. Keep all money values in one currency and all time, distance, mass, energy or volume entries in the unit printed beside the field. Mixing Tenant Improvement scopes can produce a plausible number with the wrong meaning.

  • Rentable area is entered in ft².
  • Allowance is entered in currency/ft².
  • Landlord work outside allowance is entered in currency.
  • Tenant build-out budget is entered in currency.
  • Lease term is entered in months.

Formula and worked check

Allowance amount = rentable area × allowance per square foot. Tenant gap = budget − allowance − separate landlord work, floored at zero. $40 per ft² across 2,000 ft² creates an $80,000 allowance; with $15,000 separate landlord work and a $110,000 budget, the tenant gap is $15,000. The Tenant Improvement default is an executable known-answer case, not a benchmark or recommendation. Change one input and verify that the direction of allowance amount still matches the stated relationship.

How to interpret the result

The funding gap is a negotiation and budgeting input; the monthly figure only spreads allowance across the entered term and is not GAAP rent accounting. The additional Tenant Improvement outputs expose the denominator, comparison, capacity or reverse value needed to audit the primary result instead of presenting one unexplained number.

Assumptions

  • Area and allowance basis match the lease definition.
  • Landlord work is genuinely outside the allowance.
  • The lease term is entered in whole planning months.

Save the Tenant Improvement input values and date with any material decision. A later Tenant Improvement rerun is reproducible only when the same assumptions and units are available.

Limitations and safety boundary

The page does not interpret a lease, amortize interest, calculate tax treatment, construction escalation, change orders or local permitting. Tenant Improvement is an estimate and cannot replace a contract, local code, licensed professional, calibrated measurement, lender statement or platform report where one governs the decision.

Source and privacy

The Tenant Improvement definition or rule was checked against U.S. General Services Administration — Leasing resources on 2026-08-26. Recheck U.S. General Services Administration — Leasing resources when a specification or policy behind Tenant Improvement can change. Tenant Improvement arithmetic runs in this browser tab; ecech does not receive the values through a calculation API.

Sources & assumptions

Tool Spec v2 · verified 2026-08-26. Platform rules and fees can change; the editable inputs remain authoritative for your account.

Official references

Model assumptions

  • Area and allowance basis match the lease definition.
  • Landlord work is genuinely outside the allowance.
  • The lease term is entered in whole planning months.
  • The page does not interpret a lease, amortize interest, calculate tax treatment, construction escalation, change orders or local permitting.
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Frequently Asked Questions

What does Tenant Improvement calculate?
It calculates allowance amount, tenant funding gap, total landlord support, allowance per lease month from rentable area, allowance, landlord work outside allowance, tenant build-out budget, lease term using the displayed formula.
What known result verifies Tenant Improvement?
$40 per ft² across 2,000 ft² creates an $80,000 allowance; with $15,000 separate landlord work and a $110,000 budget, the tenant gap is $15,000.
Which assumption matters most?
Area and allowance basis match the lease definition.
When should I reject the result?
The page does not interpret a lease, amortize interest, calculate tax treatment, construction escalation, change orders or local permitting.
Which source supports the calculation?
The recorded source is U.S. General Services Administration — Leasing resources, reviewed 2026-08-26. User-specific inputs still come from the user's own records.
Does Tenant Improvement send my values to a server?
No ecech calculation API receives values entered into Tenant Improvement; its arithmetic runs in browser JavaScript.

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