What are Tenant Improvements (TI) generally described as?

Tenant Improvements (TI) are generally understood as fit-out contributions that landlords make for new tenants. These improvements involve modifications or enhancements made to a rental space, often to meet the specific needs of the tenant, such as adjustments to layouts, installations, or upgrades necessary for the tenant's business operations.

Landlords frequently invest in these improvements to attract tenants and secure leases, as a well-fitted space can be a significant factor in a tenant's decision-making process. The costs associated with these improvements can sometimes be negotiated as part of the leasing agreement, and they are often seen as investments that enhance the overall value and marketability of the property.

Looking at the other choices, ongoing maintenance costs relate to general property upkeep and are not classified as tenant improvements. Fit-out contributions made by tenants suggest that the tenant is responsible for the improvements, which can vary but do not encompass the standard definition of TI as seen in common practice. Similarly, expenses for property management services refer to operational costs incurred to manage the overall property, rather than specific improvements or alterations tailored for a tenant's use.