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Many tenants these days demand a tenant improvement allowance (TIA) that is substantially bigger than what you want to give. For example, you may want to give the tenant a $30-per-square-foot TIA, but the tenant demands $45 per square foot. If the tenant has good credit, you may give in and loan it the extra amount ($15 per square foot in our example) as an additional TIA. To ensure repayment, you would amortize the additional TIA amount (with interest) in the tenant's rent over the initial lease term.
