Some $23 million is to be spent on upgrading bathrooms, common areas, dining facilities and elevators and on financing capital improvements and tenant allowances.
The total project cost is $113.8 million, of which $71.7 million goes to construction and $25.9 million goes to architectural, engineering, management, leasing, financing and legal fees, marketing and promotion, retail tenant allowances and insurance.
We've given them some T.I. — tenant improvement allowance — in retail.
Industry executives familiar with CBRE's new lease said it included an average rent of about $70 a square foot, approximately nine months of free rent and a tenant improvement allowance of about $55 a square foot.
An industry executive familiar with the terms of Cushman's new 15-year lease with Vornado Realty Trust, owner of 1290 Avenue of the Americas, said it included an average rent of about $88 a square foot, some nine months of free rent and a tenant improvement allowance of approximately $55 a square foot.
Often, you are able to negotiate a "tenant improvement allowance," which is an agreed-upon sum of money that the landlord will provide for the improvements and alterations you would like to make.
When you're negotiating on the terms with the landlord, you can conserve working capital by pushing hard on your tenant improvement allowance, as well as the work letter you're going to pursue.
Be sure to outline your expectations respecting Tenant Improvement Allowance dollars, free rent, discounts on asking rate, and lease term.
This could include several months of free rent while the gym converts the space, or additional tenant improvement allowances to help gyms defray some of the cost.
