Extended capital-markets CFO
Some specialist structures can finance completed tenant-funded improvements, not just a future build-out. The key questions are what your company paid for and owns, how long it will occupy the space, and which rights or consents a financing would require. The original construction budget is not the amount available for reimbursement.
A space lease and improvement financing are different
Your landlord provides the premises. Your company may separately fund partitions, building systems, fixtures, technology and equipment. Specialist providers describe financing for tenant improvements and equipment, including completed projects. Each asset category still needs a clear funding and ownership history.
Market reference: Mesirow: equipment and tenant improvement financing; Dolfin: new and completed tenant improvements.
Reconcile the landlord allowance first
An allowance in a public lease is evidence of a funding arrangement, not proof of tenant-owned investment. Reconcile actual landlord reimbursements, tenant overages, grants and assets purchased separately. Do not count the same expenditure once for the landlord and again for the tenant.
- Read the work letter and reimbursement conditions.
- Identify who owns installed improvements during and after the lease.
- Separate landlord base-building work from the tenant package.
Match repayment with realistic occupancy
A long financing obligation can create problems when the premises lease ends sooner. Consider firm lease term, renewal rights, relocation plans, assignment and landlord consent. An option to renew is not identical to a binding occupancy commitment. Movable equipment may need a different structure from improvements fixed to the building.
Keep the screening estimate disciplined
Public filings or permits can justify a conversation, but not an exact liquidity promise. Our initial question is whether a specific completed location deserves a financing comparison. The paid work then tests the actual schedule, required consents and provider assumptions. If the company is leaving the site or the assets are already pledged, resolving that comes first.
Illustrative example, not a client result
The decision in practice
A hypothetical office fit-out cost $18 million. A $6 million landlord allowance does not establish an $18 million tenant opportunity. The remaining expenditure, retained ownership, equipment mix and existing liens need review before estimating a financing amount.
What to prepare
- Premises lease, work letter and remaining term
- Final project costs and allowance reconciliation
- Tenant asset schedule, prior financing and intended occupancy
For an initial conversation, a summary is enough. Share private materials only through an agreed channel.
Common questions
Does a permit valuation prove eligible TI?
No. It is a project-scale clue. It does not establish who paid, which costs qualify, asset ownership or remaining value.
Can a landlord also finance TI?
New landlord-supported TI can be a separate financing discussion. Do not assume completed landlord expenditure can be reimbursed on the same terms as tenant-owned assets.
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.