Extended capital-markets CFO
A law firm can review financing for eligible improvements, furniture and equipment rather than treating every office expenditure as an immediate permanent use of cash. Compare the full occupancy and funding cost, not just rent or an allowance. The firm's legal structure, credit, partnership approvals and retained asset ownership matter as much as the office budget.
Split the office commitment into parts
Separate base building work, landlord-funded improvements, firm-funded overages, furniture, technology and moving costs. Record who owns each item and when the firm pays. The total lease commitment and total construction budget answer different questions; neither establishes the amount available through asset financing.
Review completed offices as well as new leases
A recent retained fitout may be worth examining even when no relocation is planned. Mesirow describes equipment and TI financing and Dolfin describes tenant improvement funding. Those product categories justify a comparison, not a claim that a particular firm or aged asset schedule is eligible.
Market reference: Mesirow: equipment and tenant improvement financing; Dolfin: new and completed tenant improvements.
Coordinate the firm's decision makers
Finance, management, real estate and partnership governance may each control part of the decision. Identify borrowing authority, guarantee requirements and how payments interact with the firm's cash cycle. An office financing should not be evaluated separately from distributions, working capital and other obligations.
Compare flexibility through the lease term
Consider growth, contraction, relocation and technology replacement. A financing arrangement should address what happens if the firm vacates, subleases or replaces assets early. Compare company cash and bank funding alongside any specialist proposal. Preserving liquidity can be valuable, but it has a price.
Illustrative example, not a client result
The decision in practice
A firm renews a principal office, keeps substantial improvements and replaces furniture and IT. Build separate schedules for retained assets and new purchases. The financing question is how to preserve useful liquidity without adding obligations beyond the expected use of each category.
What to prepare
- Office leases, allowances and work letters
- Firm-funded retained and planned asset schedules
- Borrowing authority, cash cycle and existing banking arrangements
For an initial conversation, a summary is enough. Share private materials only through an agreed channel.
Common questions
Does a prestigious firm name establish credit quality?
No. Financial performance, entity obligations and governance still need assessment.
Is landlord allowance money part of the firm's asset pool?
Not automatically. Ownership and payment terms must be reviewed to prevent double counting or claiming assets the firm cannot finance.
Sources and further reading
Our decision framework is CFO Signals analysis. External references describe market practices and products, not an endorsement, partnership or available offer. Terms and eligibility require confirmation for your transaction.