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Updated over 4 years ago,
What's a standard % of TI Allowance on a shell retail space?
Good evening,
I'm leasing out a 2000 SF shell retail space on downtown strip that's been used for retail for the past 15+ years. Stripped down to shell since last tenant. It's useable with minimal build-out as-is but any long term tenant will likely want to bring it to a more cosmetically pleasing state and spend a little money doing so. What is an appropriate Tenant Allowance to Gross Rent Ratio for a 4-5 year lease (in terms of range)?
Lastly, should this % be different if we decide to lease to a restaurant on a longer term (7-8 years)?
Currently sits as concrete floors and concrete walls, with fairly dated electrical / lighting and ceiling tiles.
Thanks in advance for the help.