Glossary of Useful Retail Leasing Terms

In the following section, we have defined some of the most commonly used terms in the real estate industry, as referenced in the previous sections of this leasing tool kit. Read on to familiarize yourself with these terms as you progress through your leasing journey.

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Tenant Improvement Allowance (TIA)
TIA is a pre-negotiated sum of money a landlord will provide the tenant to help cover a portion of construction costs.
  • TIA is usually expressed by dollars per square footage – i.e.: $30.00 per square foot on a 3,000 sf = $90,000
  • The tenant should be prepared to pay construction expenses upfront and be reimbursed later by landlord through TIA (not more frequently than every 30 days)
  • TIAs are almost always negotiable and are often determined by condition of the Premises (e.g., new construction often requires a larger TIA from the Landlord)
TIAs are usually only applicable for construction costs (i.e., hard costs) associated with improvements to the space; not design fees, attorney fees, furniture, or movable equipment.
Time & Materials (T&M)
A Time and Materials (T&M) contract includes a quote for a fixed hourly wage plus the cost of materials for a construction job.
Type I Kitchen Exhaust
Type I kitchen exhausts or hoods are used with appliances that are used to cook greasy foods or over cooking that can produce smoke. Type I hoods are often located above deep fryers, cook tops, open-flame stoves, conveyor pizza ovens, char broilers, and more. This type of exhaust is mandated by building/health code.
Type II Kitchen Exhaust
Type II kitchen exhausts or hoods focus on kitchen equipment that does not produce excess smoke or grease (dishwashers, ovens, pasta cookers, etc.) but may still need exhaust for steam, hot air, or odors.