What Are Tenant Improvements (TI) in CRE?

Tenant improvements (TI) are customized buildouts landlords or tenants fund to make commercial space usable for a specific occupant—office layouts, industrial docks, retail storefronts. Leases specify TI allowances, delivery conditions, and who manages construction. Leasing and property management software tracks TI budgets, work letters, and handoff to operations. AI assists with lease clause extraction on TI obligations and with project coordination on larger repositioning programs.