Commercial Lease TI Amortization Calculator

Over-standard TI amortization adds to base rent over lease term.

Over-standard TI

Amortization rate %

Lease term years

Tenant sq ft

Additional annual rent

$21,839

Additional $/sf

Total repaid

$218,390

How the math works

Amortize TI as if loan: P&I formula. Annual = monthly × 12. $/sf = annual / sq ft.

$150k 8% 10y = $1,820/mo × 12 = $21,841 = $2.73/sf additional rent.

How to Use

Enter over-standard ti.
Enter amortization rate %.
Enter lease term years.
Enter tenant sq ft.
Read additional annual rent.

Frequently Asked Questions

TI amortization mechanics?

Tenant requests fit-out beyond landlord's standard TI allowance. Landlord offers: (a) tenant pays out-of-pocket, or (b) landlord funds + tenant repays via rent. Amortization: TI cost / lease term × interest factor. Interest: 6–10% typical, applied to outstanding TI balance. Effective additional rent: $5–25/sf for typical $25–50/sf overage. Term-match: amortization over remaining lease term. Early termination: tenant repays remaining unamortized TI balance.

How does this asset class compare to traditional CRE?

Specialty assets (self-storage, RV parks, MHP, marinas, cold storage, data centers, parking, car wash, QSR/c-store, billboards, cell towers) typically offer higher cap rates than office/retail but with more operational complexity. They reward specialized operators with deep market knowledge. Lender pool is narrower, capital costs sometimes 50–150 bps higher, but downside resilience often better.

Capex and operational considerations?

Specialty assets often have heavier operational burden than passive triple-net retail. Self-storage, RV, MHP: tenant turn, security, basic upkeep. Marinas, parking, car wash: equipment-heavy with replacement reserves. Cold storage, data center: utilities are major cost. Billboards, cell towers: minimal opex, near-passive. Match management capacity to asset operational intensity.

Exit strategy?

Specialty asset cap rates have compressed significantly over last cycle but volatility is real. Buyers: REITs, private equity rollups, regional operators, 1031 buyers. Strong NOI history, environmental clarity (especially for car wash, gas station), and lease structure (for billboards, cell towers) drive valuation. Plan exit 24+ months in advance for best execution.