In today’s market, tenant improvement allowances (TIAs) can be the difference between winning and losing a long-term, creditworthy tenant. They streamline the move-in process, provide tenants with space that fits their needs, and give landlords a competitive edge over comparable properties.
The challenge: high costs and long timelines have made TIAs less attractive for owners, while tenants continue to face buildout budgets that strain balance sheets.
A new approach addresses these issues head-on, offering a smarter way to fund improvements that works for both landlords and tenants.
The Hidden Cost of Tenant Improvements
Inflation, tariffs, and supply chain disruptions have pushed the cost of tenant improvements, as well as furniture, fixtures, and equipment (FF&E), to new highs. Add high interest rates to the mix, and the cost of getting a property move-in ready can be intimidating.
To attract tenants, landlords have typically had limited choices: dip into reserves, raise equity, delay occupancy, or tap credit lines that tie up capital better spent on operations and growth.
A new approach changes this equation, allowing landlords to remain competitive without capital calls while providing tenants the flexibility to spread payments across longer terms.
The Challenge for Landlords
With valuations softening and occupancy under pressure, landlords need flexible ways to attract and retain creditworthy tenants. Concessions like free rent and TIAs can help, but often come at a steep cost.
Traditional funding methods—equity, bank loans, and credit lines—are not only expensive but also slow to arrange. The restrictions on how funds can be used add another layer of difficulty, often prolonging vacancies and limiting options for repositioning space.
The Challenge for Tenants
Tenants face many of the same obstacles. Buildout and equipment costs frequently exceed budgets, creating financial strain. Traditional financing options are inflexible, weigh heavily on balance sheets, and slow down the move-in process, delaying revenue generation and disrupting business plans.
These high upfront costs often force tenants to compromise, settling for cheaper space in less ideal locations. While pandemic-era vacancies drove TI allowances higher beginning in 2020, those offerings have since declined, leaving tenants with fewer options at a time when construction and financing costs remain elevated.
A Faster, Flexible Funding Model
The Dolfin TI Lease offers unsecured, non-recourse financing for tenant improvements, equipment, and FF&E. Key features include:
- Funds 100% of TI and equipment costs.
- Fixed rates amortized over the entire term of the tenant’s lease (5 to 20+ years).
- Available across all industries (industrial, healthcare, professional services, retail, etc.)
- Offers much faster execution than traditional financing options with its simple 5-page lease.
Dolfin even offers a unique sale-leaseback option that lets landlords and tenants recoup funds already invested in tenant improvements, freeing up trapped cash for other priorities.
Competitive Advantage for Landlords
With the Dolfin TI Lease, landlords can deliver turnkey space without tapping equity or reserves. Capital can instead be directed toward higher-yielding opportunities.
The Dolfin TI Lease streamlines negotiations and accelerates closings, helping landlords bring tenants into turnkey space more quickly. The ability to quickly repurpose a space also expands the range of tenants a property can attract, strengthening competitiveness in markets where occupancy is under pressure.
Competitive Advantage for Tenants
Traditional TI financing often ties up working capital and limits growth. The Dolfin TI Lease provides 100% financing for past, present, and future buildouts, allowing tenants to preserve cash and credit lines for priorities like hiring, expansion, or R&D.
With long-term unsecured capital and funding available in as little as 30 to 60 days, tenants can move in faster, stabilize operations, and focus on growth rather than balance sheet strain.
Who Benefits Most?
The Dolfin TI Lease is designed for landlords and tenants with specific needs:
- Landlords competing in markets where occupancy is slipping and incentives make the difference
- Growth-focused tenants with $100 million+ in revenue and $20 million+ in EBITDA facing buildout constraints
- Finance leaders—CFOs, corporate real estate heads, and treasurers—seeking efficient balance sheet solutions
The Dolfin Advantage
The Dolfin TI Lease makes tenant improvement funding faster, simpler, and more flexible.
Key Terms:
- Funding: $2 million to $300+ million
- Rates: Currently 6.5% to 9%, according to credit
- Term: 5 to 20 years or more, aligned with the property lease term
- Structure: Unsecured
- Time to close: 30 to 60 days investment grade, 60-90 days non-investment grade
For landlords, that means filling space faster and attracting tenants without draining equity or reserves.
For tenants, that means building out the right space while keeping capital free for growth, expansion, and higher-return opportunities.
