Commercial real estate

Tenant Improvement Allowance Calculator

Compare a landlord allowance with expected tenant improvement costs. Replace every default with figures that apply to your property and location.

What this calculator estimates

Compare a landlord allowance with expected tenant improvement costs. It combines the inputs below to produce Tenant cash required. Every assumption remains editable so the estimate can reflect the property, financing and location being evaluated.

Worked example

Using the displayed sample assumptions, the calculator produces $125,000. This is an illustration, not a market quote. Change one input at a time to understand what drives the result.

Inputs and assumptions

• Premises area — sample input: 5000 sq. ft.
• Allowance per area unit — sample input: 40 currency units per sq. ft.
• Expected buildout per area unit — sample input: 65 currency units per sq. ft.
• Other tenant costs — optional — sample input: 0 currency units

How to interpret the result

Use lease definitions and verified operating statements. Compare a conservative case with an expected case and keep a record of the assumptions used.

Common mistake to avoid

Do not compare properties using inconsistent NOI definitions. Local definitions, taxes, lending practices and measurement requirements can materially change the result.

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Reviewed 2026-09-08.