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Although you may have no problem providing a tenant improvement allowance (TIA) for hard costs (the costs of labor and construction materials associated with getting a new space ready to occupy) for a new tenant, are you willing to allow the tenant to use the TIA to cover soft costs (architectural, engineering, design, consulting, and filing fees), and furniture and equipment costs, too? Think twice before agreeing to cover soft costs, which can quickly exhaust TIA funds.
