Extended capital-markets CFO
A renewal can extend the time a company expects to use its improvements and create a new investment budget. It does not automatically establish ownership or make old improvements financeable. Review retained assets and new work separately, then compare landlord funding, company cash and third-party financing before the real estate terms are final.
Separate old assets from the new budget
Identify retained tenant-funded improvements, assets being removed and proposed replacements. Avoid counting a demolished fitout in both the existing-asset pool and the new project. Reconcile the old schedule with the facilities team, not only the general ledger. Condition and expected use matter alongside recorded age.
Read the renewal economics together
A larger allowance may be offset by rent, term or other concessions. Compare the total occupancy commitment, not the allowance in isolation. Dolfin describes improvement financing for tenants and landlords, but their funding roles are not interchangeable and proposed terms require transaction-specific confirmation.
Market reference: Dolfin: new and completed tenant improvements; Dolfin: landlord TI financing.
Confirm the term you can actually rely on
Separate signed firm term from options, breaks and rights subject to conditions. Ask counsel to review ownership, assignment, restoration and landlord consent. If an asset funding term would outlast secure occupancy, understand how the provider proposes to address that gap before modeling the structure as available.
Coordinate Treasury and real estate early
Real estate may optimize rent while Treasury optimizes liquidity. Use a combined comparison showing allowance, company contribution, financing payments and flexibility to leave or resize. An existing bank facility may remain the simplest choice. The renewal is an opportunity to compare, not a reason to add financing at any cost.
Illustrative example, not a client result
The decision in practice
A tenant renewing for a longer period will retain its reception and meeting areas but replace IT and workstations. The retained improvements, new technology and landlord-funded construction need separate schedules. Financing one category does not imply the entire renewal package can be monetized.
What to prepare
- Current lease, proposed renewal and work letter
- Retained, removed and new asset schedules
- Allowance, rent concessions and company-funded budget
For an initial conversation, a summary is enough. Share private materials only through an agreed channel.
Common questions
Does an option count as committed lease term?
Not automatically. Exercise conditions, timing and provider requirements matter. Distinguish contractual options from a signed extension.
Should we negotiate financing after signing the renewal?
Preferably compare early, while allowances, consents and timing can still be coordinated. Final funding still depends on signed documents.
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.