9.29 B. Interior Allowance And Fit-Up

• Jurisdiction: New York

B. Interior Allowance and Fit-up

Whether or not the landlord built the space, tenants often get an interiors allowance for the initial fit-up work: Landlords provide a credit of so many dollars per square foot or they provide certain standard items like electrical outlets, doors, latchsets, lighting fixtures, plasterboard, and carpet.

Most tenants prefer better quality or simply need something other than the building standard. But unless you negotiate it, the lease may permit no credit for items your client doesn’t want.

The tenant portion of fit-up can quickly reach $55 or $70 per square foot for interiors that aren’t lavish. Tenants with more technical requirements (e.g., any type of raised floor, trading rooms...