costs borne for commercial real estate improvements.

[Atharv Kapoor]

Hi, I own a commercial property in New Delhi, India. The tenant which previously occupied the property has vacated it after the end of the lease term. I recently received enquiries for the property but a common question from prospective tenants is who is reponsible to tenant improvements and who bears the cost?

Could someone throw some light on the matter please?

[David Alvarado]

Yes, could be 50/50, or you as the landlord could pay 100%. If the tenant does perform the improvements that does not necessarily mean they are entitled to a discounted rent through their term, but you may consider offering them a certain period of free rent while they make improvements. A lot of different ways to structure it.