A tenant improvement (TI) allowance is your landlord's contribution to your build-out, quoted per square foot of leased area. In the 2026 GTA market: $20–60/sf on standard office space, $40–80+ in premium downtown locations, $15–50 on retail, $30–60 on restaurants. It typically covers 40–70% of a real build-out — the rest is your capital. Which is why the single most useful move in the whole process is knowing your construction number before you negotiate the lease, not after.
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Get a build-out estimate → or call 647-477-7999The landlord owns the building; you need it configured for your business. The TI allowance is the landlord's investment in making that happen, typically expressed in dollars per square foot — a space that works for you means a longer, more stable lease for them. TI allowances are standard in commercial leasing across the GTA, whether the space is office, retail or restaurant. Both the amount and what it covers are negotiable.
The exact split varies by landlord and lease. Get the covered costs defined in writing before you sign — vague language is where the disagreements live.
Typical 2026 ranges:
A higher allowance usually rides on a longer lease commitment or higher base rent. It isn't free money — the landlord prices it in and expects to recoup it through the lease.
The most common mistake we see: tenants negotiating a TI number with no idea what their build-out actually costs. Get a contractor's estimate first. Then you're negotiating from a number, not a feeling.
Landlords invest more in tenants who'll stay. A 5-year lease generally commands a higher allowance than a 3-year. If you're confident in the location, term is your cleanest bargaining chip.
High vacancy means landlords compete — and allowances rise. In 2026, parts of the GTA office market still carry elevated vacancy versus pre-pandemic levels. That's leverage in your pocket; use it.
Many leases include 1–3 months of free rent. If your build-out is significant, extra TI dollars are often worth more than free months — offer the trade.
Your lease should define exactly which expenses qualify, including whether soft costs like design fees and permits count. Vague now means contested later.
Reimbursement after completion, staged funding as work progresses, or landlord-managed construction with the TI applied to costs — each does something different to your cash flow during the build. Know which one you're signing.
Before you sign, have your contractor read the TI clauses. We catch things that don't read as legal problems: unrealistic build-out deadlines, restrictions on contractor selection, approval loops that quietly add weeks.
The allowance rarely covers the whole job — 40–70% of total renovation cost is typical. On a 3,000 sf office with a $50/sf allowance ($150,000) and a $250,000 build-out, the $100,000 gap comes from your capital. Better to find that number before signing than after — it belongs in your business plan, not just the construction budget.
Pre-lease estimates so you negotiate from a real number, a contractor's read of the TI clauses before you sign, a scope of work built around what the allowance actually covers — and then the build-out itself, with permits and inspections handled.
Buildup Contracting builds commercial interiors across Toronto & the GTA — restaurants first, retail and office built with the same discipline. Explore our retail fit-out services and office & commercial tenant improvement services, or book a free site walk — written scope and estimate within one business day.
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“BuildUp handled the full build-out of our restaurant and I honestly couldn't have asked for a smoother process. Lev understood from day one how important it was to open on schedule, and he kept everything moving — permits, inspections, the kitchen, the dining area — without me having to chase anyone.”
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What happens when you get in touch
You deal with Lev directly. He does the site walk and writes the scope — not a salesperson who hands you off.
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Three questions. We come back with a preliminary scope and a first read on budget within one business day — plus a free site walk anywhere in the GTA if it makes sense.
Prefer to talk? Call 647-477-7999. WSIB clearance and $5M commercial liability insured · 1-year workmanship warranty.
Planning a build-out
Buildup Contracting builds offices, retail stores and restaurants across the Greater Toronto Area — permits, trades and inspections on one contract, with a written scope and a first read on budget within one business day of the site walk.
Restaurant constructionRetail fit-outsOffice and commercial TIFranchise and multi-unitLandlords and property managers
Building in a specific city? These pages cover the local approvals, the departments that review them, and what usually moves the schedule there.
More of the research we use to scope real projects:
Commercial kitchen design mistakesChoosing a restaurant contractorOffice fit-out costs in TorontoBubble tea shop build-outsLease-to-opening checklistChoosing a renovation contractorAll guides
Send us the unit address, approximate square footage and your concept. We walk the space for free, then send a written scope and a real price range — no obligation.
