A landlord contribution toward the cost of tenant-specific buildout or improvements within the leased space. TIAs are capital expenses borne by the landlord and should never appear in the CAM expense pool.
TIAs are negotiated at lease execution and recorded as landlord capital expenditures. They are specific to one tenant's space and provide no benefit to other tenants. Including TIA amortization in the CAM pool is a clear overcharge.
A landlord provided a $500,000 TIA to a new anchor tenant and included the annual amortization ($50,000/year) in the property's operating expense pool. All other tenants paid a share of costs that exclusively benefited the anchor tenant's private space.
Request that the landlord confirm no TIA-related costs appear in the CAM pool. Large single-year spikes in operating expenses may reflect a newly amortized TIA for another tenant.
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Start Free AuditThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.