Improvement Allowances Clause Samples
The Improvement Allowances clause defines the amount and terms under which a landlord provides funds to a tenant for making improvements or alterations to leased premises. Typically, this clause specifies the maximum allowance available, the types of improvements covered (such as interior build-outs or upgrades), and the process for obtaining reimbursement or direct payment. Its core practical function is to clarify financial responsibility for property enhancements, ensuring both parties understand the scope and limits of the landlord’s contribution and reducing disputes over improvement costs.
Improvement Allowances. To help pay for those costs which are incurred by Tenant in designing and constructing those improvements which Tenant desires to make to the Fourth Amendment Expansion Spaces (the “Fourth Amendment Improvements”), Landlord shall make each Fourth Amendment Applicable Improvement Allowance available to Tenant. Landlord shall disburse each Fourth Amendment Applicable Improvement Allowance on a monthly basis in accordance with customary construction disbursement procedures and upon receipt of a sworn construction statement and draw requests, with supporting invoices for actual costs incurred and lien waivers from all material contractors and subcontractors delivered one month in arrears; it being agreed, however, that Landlord shall not be required to disburse any portion of a Fourth Amendment Applicable Improvement Allowance if Tenant is then in default of its obligations under the Lease. If the actual cost of the Fourth Amendment Improvements for any Fourth Amendment Expansion Space exceeds the amount of the Fourth Amendment Applicable Improvement Allowance for such Fourth Amendment Expansion Space, Tenant shall pay the excess costs without reimbursement from Landlord as and when such excess costs become due and payable. If Tenant has not submitted requisitions covering all of the Fourth Amendment Applicable Improvement Allowance for any Fourth Amendment Expansion Space on or before the Fourth Amendment Applicable Improvement Allowance Expiration Date for such Fourth Amendment Expansion Space, then up to, but not more than, $5.00 per square foot of any unused portion of the Fourth Amendment Applicable Improvement Allowance may be applied as a credit against the next installments of Rent due under this Lease. Notwithstanding anything to the contrary in the foregoing, Tenant may pool the Fourth Amendment Applicable Improvement Allowances for use in paying the costs of designing and constructing improvements to any one or more of the Fourth Amendment Expansion Spaces, but Tenant shall not be entitled to draw upon a Fourth Amendment Applicable Improvement Allowance prior to the Fourth Amendment Expansion Space Delivery Date for such Fourth Amendment Expansion Space, or after the Fourth Amendment Applicable Improvement Allowance Expiration Date. Landlord shall be permitted to offset against any Fourth Amendment Applicable Improvement Allowance any amounts past due to Landlord by Tenant under this Lease. Each Fourth Amendment Applicable Improvement Allowance shal...
Improvement Allowances. Tenant acknowledges that it has made a complete examination and inspection of the Premises and accepts the same in its current condition, "AS IS, WHERE IS", without recourse to Landlord, and Landlord shall have no obligation to complete any improvements to the Premises. ADDITIONALLY, LANDLORD MAKES NO WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE LEASEHOLD IMPROVEMENTS IN THE PREMISES. ALL IMPLIED WARRANTIES WITH RESPECT THERETO, INCLUDING BUT NOT LIMITED TO THOSE OF MERCHANTABILITY, HABITABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ARE EXPRESSLY DISCLAIMED, NEGATED AND WAIVED. This Paragraph 5(a), however, is subject to the lease amendments set out in Paragraph 12 below.
Improvement Allowances. 2.1.1 Subtenant shall be entitled to a one-time base improvement allowance (the “Base Improvement Allowance”) in an amount up to Forty-Five and No/100 Dollars ($45.00) per rentable square foot of the Sublease Premises (based on a 14% load factor rather than a 5% load factor) (to wit, $865,020.60) for the costs relating to the initial design and construction of Subtenant’s improvements which are permanently affixed to the Sublease Premises (the “Initial Improvements”). Subject to the provisions of Section 2.1.2, below, Subtenant has elected to receive $250,000.00 in additional funds (the “Excess Improvement Allowance”; and collectively, with the Base Improvement Allowance, the “Improvement Allowance”) from Sublandlord for costs of the Initial Improvements. All Initial Improvements for which the Improvement Allowance has been made available shall be deemed Sublandlord’s property under the terms of the Sublease. In no event shall Sublandlord be obligated to make disbursements pursuant to this Work Letter (A) in a total amount which exceeds the Improvement Allowance, or (B) for any costs incurred later than December 31, 2004 (the “Outside Improvement Date”). After the Outside Improvement Date, any unused amount of the Base Improvement Allowance shall accrue to the sole benefit of Sublandlord, it being understood that Subtenant shall not be entitled to any credit, abatement or other concession in connection therewith; provided, however, upon completion of the Initial Improvements, Subtenant shall have the right, exercisable by written notice to Sublandlord within six (6) months following the Commencement Date to apply any unused amount of the Base Improvement Allowance that does not to exceed one-third of the total Base Improvement Allowance (the “Allowance Excess”) as reimbursement from Sublandlord for out-of-pocket costs and expenses actually incurred by Subtenant in connection with Subtenant’s relocation of its business from its prior space to the Sublease Premises and/or Subtenant’s acquisition and installation of furniture, partition systems, furnishings and computer or communications equipment cabling for the Sublease Premises; provided, further, notwithstanding anything in this subsection the contrary, in no event shall the aggregate of any reimbursement received by Subtenant pursuant hereto exceed the Allowance Excess. Any reimbursement from the Allowance Excess shall be paid to Subtenant within thirty-five (35) days after delivery by Subtenant to Subla...
Improvement Allowances. In addition to performing the Work, as defined below in Subclause B, Lessor hereby agrees to provide County with an allowance of twenty dollars ($20.00) per RSF (totalling $147,080.00) to be used towards FF&E, cabling, and any other move-in related expenses (“FF&E Allowance”). Any unused FF&E Allowance may, at County’s sole discretion, be used to offset Rent and/or converted to cash upon thirty
Improvement Allowances. Tenant acknowledges that it has made a complete examination and inspection of the Added Premises and accepts the same in its current condition, “AS IS, WHERE IS”, without recourse to Landlord, and Landlord shall have no obligation to complete any improvements to the Premises. ADDITIONALLY, LANDLORD MAKES NO WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE LEASEHOLD IMPROVEMENTS IN THE PREMISES. ALL IMPLIED WARRANTIES WITH RESPECT THERETO, INCLUDING BUT NOT LIMITED TO THOSE OF MERCHANTABILITY, HABITABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ARE EXPRESSLY DISCLAIMED, NEGATED AND WAIVED. This Paragraph 4(a), however, is subject to the lease amendments set out in Paragraph 12 below. Ninth Amendment to Office Lease May 8, 2007
Improvement Allowances. Landlord has no obligation to improve or remodel the Premises and Tenant accepts the Premises in their “as is” condition on June 1, 2005 for the Extended Term. Notwithstanding the foregoing, Landlord agrees to make the following payments to Tenant: (i) within 30 days following the delivery of this Addendum, mutually executed, Landlord will pay Tenant [ * ] as a reimbursement to Tenant for existing improvements in the Premises (the “First Allowance”); and (ii) promptly after June 1, 2010, Landlord will pay Tenant [ * ] (the “Second Allowance”) as a reimbursement to Tenant for existing improvements in the Premises; provided that, if Tenant exercises its option under Section 10.C(2) below to maintain the Expiration Date as March 31, 2008, the Second Allowance will no longer be applicable. If there is an uncured event of default by Tenant at the time Landlord is obligated to pay the respective allowance, Landlord shall have the right to withhold payment of the respective allowance until such event of default is cured. Any amounts expended by Tenant in excess of the allowances shall be at Tenant’s sole cost and expense. Any alterations and improvements to the Premises by Tenant are subject to the terms of the Lease, including obtaining Landlord’s prior consent if required by the terms of the Lease.
Improvement Allowances. In consideration for Tenant funding all Tenant Improvement Work, Landlord shall provide abatement of Base Rent in accordance with the schedule in Article III Section 3.2 of this Lease "Tenant Improvement Allowance". Tenant agrees that the dollar value of such Tenant Improvement Allowance shall be used to pay the cost of: (i) the preparation of the Plans, (ii)obtaining the building permit and Certificate of Occupancy (or functional equivalent) from the City of Coral Gables, (iii) required demolition; (iv) the Tenant Improvement Work, and (v) buildout costs including, without limitation, government impact fees, refurbishing of existing improvements, decorations, signage and relocations and installation of HVAC system. The above shall include, without limitation, the purchase and installation of drywall partitions, ceiling, carpeting, wallcovering, window treatments and energy efficient and lighting fixtures. The Tenant shall have the right to use any existing Improvements in the Premises without additional costs and without deduction from the Improvement Allowance. Any requests by Tenant to modify the Plan or have any work ("Extra Work") not constituting a part of the Tenant Improvement Work to be installed in the Premises, shall require Landlord's prior written approval and any delays occasioned thereby (including, without limitation, a reasonable time for Landlord to review and approve revised Plans) shall be "Tenant Delays".
Improvement Allowances. Tenant shall receive a “Base Improvement Allowance” of Two Hundred Forty-four Thousand Five Hundred Dollar ($244,500.00) allowance for construction of building improvements and for related architectural and engineering services. Tenant shall receive an “Additional Tenant Improvement Allowance” of up to Two Hundred Thousand Dollars ($200,000.00) at its option. The Base Improvement Allowance and the Additional Tenant Improvement Allowance, if elected, shall be used for Tenant directed building improvements, architectural and engineering services only. Attached hereto as Exhibit I is Tenant’s itemized list of all anticipated improvements, which list may not be changed without Landlord’s consent (which consent shall not be unreasonably withheld). Provided that the improvements specified in Exhibit I have been completed in compliance with Paragraph 12 and this paragraph, Landlord shall promptly reimburse Tenant for said improvements after presentation to Landlord of the invoices for the actual construction costs as billed. The parties understand and agree that the Improvement Allowances are made for Tenant’s benefit and to further induce Tenant to enter into the Lease. Accordingly, in the event of Tenant’s default, the unamortized amount of the Improvement Allowances shall be an element of Landlord’s damages for breach of the Lease.
Improvement Allowances