Work Letter Gap Calculator

Work letter defines landlord scope. This calculator sizes tenant overage.

Total build-out cost PSF

Landlord work letter PSF

TI allowance PSF

Rentable SF

Tenant out-of-pocket

$400,000

Tenant out-of-pocket PSF

$40.00

Total build-out

$1,800,000

How the math works

Gap = build-out − work letter − TI allowance. OOP = gap × SF.

$180 total − $60 work − $80 TI = $40/SF gap. 10,000 SF: $400k tenant out-of-pocket. Often surprises tenants who didn't price premium finishes.

How to Use

Enter total build-out cost PSF.
Enter landlord work letter PSF.
Enter TI allowance PSF.
Enter SF.
Read tenant out-of-pocket cost.

Frequently Asked Questions

What's the work letter?

Negotiated exhibit spelling out exactly what landlord delivers — space plan, finishes, mechanical spec. Anything beyond is tenant's responsibility, funded by TI allowance or tenant cash. Ambiguity here is the largest source of lease-negotiation disputes after rent.

Cost components?

Landlord work: building-standard walls, doors, HVAC, lighting, carpet, ceiling. Above-standard items — kitchens, specialty lighting, AV, server rooms, upgraded finishes — fall to tenant. Allowance is money, work letter is built scope.

Gap implications?

Tenant must pay anything above work letter + TI allowance. Out-of-pocket can surprise: tenant expects $120/SF turnkey, actual build-out is $200/SF, LL provides $100/SF, tenant covers $100/SF. Always price full build-out before signing.