Landlord Contribution Vs TI Allowance Calculator

Contribution structure matters. This calculator compares.

Rentable SF

Base rent PSF

Landlord contribution

Amortization rate %

Term years

Rent add equivalent PSF/yr

$10.92

Annual amortization payment

$131,034

Effective rent PSF

$44.92

How the math works

Amortize contribution over term at rate. Annual payment = monthly payment × 12. Per-SF equivalent = payment / SF. Add to face rent for effective.

$900k over 10 yr at 8% = $10,919/mo = $131k/yr = $10.92/SF. On $34 face: $44.92 effective. Material — this is what tenant actually pays if financed by landlord.

How to Use

Enter SF.
Enter base rent PSF.
Enter total LL contribution.
Enter amortization rate %.
Enter term years.
Read rent-equivalent impact.

Frequently Asked Questions

What's the difference?

TI allowance: landlord reimburses tenant for qualified improvements up to a capped $/SF. Landlord contribution (cash): landlord funds hard costs directly through own GC or pays tenant cash. Tax treatment differs; TI allowance is capitalized, cash may have different book/tax basis.

Amortization?

TI and cash contributions are amortized into rent — typically spread evenly over term at 7-10% interest. Effect: $100/SF TI over 10 years at 8% = $15/SF annual rent add. Visible in effective rent calculations.

When to prefer each?

TI allowance: tenant has GC preference, wants control of build. Cash contribution: landlord has GC advantage, tenant prefers cap rate simplicity. Cash direct to tenant: quick cash but less TI oversight (used in small retail). Most large office/industrial deals use TI allowance.