Let’s say the deal calls for the payment of a Tenant Improvement Allowance. What issues does that bring to the table when negotiating the lease?

Here’s my list: (1) is use of the money restricted to only certain purposes; (2) what happens if all of the money isn’t spent; (3) how are tax obligations affected; (4) what conditions, if any, must be met before the check is written; (5) should the landlord get any part of the money back if the lease is prematurely terminated; (6) what happens if the landlord doesn’t pay the allowance; and (7) should the lender pay the allowance if it takes the property over before the money is paid? If any reader has another issue to list, just let this lone blogger know because he is going to tackle this subject in three or four separate postings, beginning with (1) and (2). [Read more…]