Two terms show up in almost every commercial lease, and tenants often treat them as the same thing. They are not.
The work letter
A landlord work letter describes what the landlord will build or deliver — for example, demised walls, a finished restroom, or HVAC to a certain capacity. It defines the starting condition of your space, often called the base building or warm shell.
The tenant improvement allowance
The TI allowance is money — a dollar amount per square foot the landlord contributes toward your build-out. You direct how it is spent, within the lease rules, and you fund anything above it.
Why the distinction matters
If the work letter delivers more, your allowance stretches further. If it delivers a bare shell, more of your allowance goes to base infrastructure before you reach finishes. Price the actual drawings against both before you sign.
Reviewing a lease now? Send us the space plan and the work letter and we will price it.
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