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Tenant Improvement Reimbursement Lag Calculator

Reimbursement lag increases tenant effective cost of build-out.

Submission to approval

Approval to payment

Documentation delay

Invoice amount

Cost of capital %

Effective carry cost

$2,712

Total lag days

Daily carry cost

$49

How the math works

Total lag = sum of stages. Daily carry = invoice × COC / 365. Cost = daily × lag.

55 days lag × ($200k × 9% / 365) = 55 × $49.32 = $2,713 effective carry cost on a single invoice.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Tenant Improvement Reimbursement Lag Calculator is built to give a quick, browser-based estimate for tenant improvement reimbursement lag. Reimbursement lag increases tenant effective cost of build-out. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the tenant improvement reimbursement lag result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this tenant improvement reimbursement lag estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

How to Use

Enter submission-to-approval days.
Enter approval-to-payment days.
Enter documentation delay days.
Enter invoice amount.
Enter cost of capital %.
Read effective cost of lag.

Frequently Asked Questions

What's a typical TI lag?

Small landlords: 45-90 days. Institutional landlords: 30-60 days. REIT-managed: 21-45 days. Lender-approved proceeds (landlord financing tenant improvements via loan): 30-60 days including lender administrative steps. Luxury office (Hines, Tishman Speyer): often <21 days with white-glove process. The variance is largely operational: good landlords have standardized TI processes; bad ones invent the process each time.

What slows down reimbursement?

Missing lien waivers from subs (biggest single cause — tenant GC tardy), change-order documentation disputes, lack of final inspection, owner's rep review delays, lender construction draw coordination (if landlord-financed), split-payee issues between tenant and vendor. Each issue adds 7-30 days. Institutional tenants assign a construction coordinator purely for TI paperwork management.

Can lag be negotiated?

Yes. Ask for (1) fixed timeline in lease (e.g., '30 days from complete submission'), (2) late-payment interest at prime + 2%, (3) tenant remedy if landlord misses timeline (offset against rent after 45 days), (4) escalation to senior landlord exec if dispute. Include TI process document as lease exhibit. These are common in institutional tenant leases and rare in small-business leases.

How do you minimize lag as tenant?

(1) Submit packages complete first time (missing docs restart the clock), (2) use a dedicated construction coordinator for TI paperwork, (3) collect lien waivers before GC pays subs not after, (4) schedule inspection at milestone not just at end, (5) keep copies of everything for rebuttal. Institutional tenants reduce lag 50%+ with these practices. Small tenants often take 2x the time on same-size build-out due to amateur paperwork.