How do I link a TI to the lease?

Reference the lease by date and section in the TI preamble and attach the lease exhibit or include the lease number to create a clear contractual linkage.

Can a TI be signed electronically?

Yes, electronic signatures are valid where parties consent and the e-signature process documents intent, attribution, and retention; exceptions may apply for certain notarized records.

Who pays permit fees?

The TI should state permit responsibility explicitly; common options are tenant-paid, landlord-paid, or reimbursed to the tenant via allowance.

Are notary or witness signatures needed?

Notarization requirements vary by jurisdiction and document type; some jurisdictions or instruments tied to property transfer may require notarization or witnesses.

How should change orders be handled?

Specify a written change order process with approval authority, price adjustments, and schedule impacts to avoid disputes.

How long should I retain TI records?

Keep executed TIs for the lease term plus at least 3–7 years; retain longer if tax, insurance, or litigation risk exists.

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Tenant Improvement

Tenant Improvement

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What a Tenant Improvement document is and when it’s used

A Tenant Improvement (TI) document describes alterations, finishes, fixtures, and related work a tenant or landlord will perform to prepare leased commercial space for occupancy. It typically outlines scope of work, responsibilities, cost allocations, schedule, approvals, permitting obligations, ownership of improvements, and conditions for turnover. TI documents can take the form of a lease addendum, construction exhibit, or separate improvement agreement tied to the master lease. Clear TI paperwork reduces disputes over who pays, who manages permits, and who retains installed fixtures at lease end.

Why a clear Tenant Improvement agreement matters

A well-drafted TI document allocates risk, clarifies payment and approval paths, and preserves landlord and tenant rights so construction proceeds without unexpected stoppages or disputes. It also documents permit responsibilities and conditions that affect insurance, code compliance, and final acceptance.

Who typically prepares and reviews Tenant Improvement documents

Circulate drafts for legal review and permit verification before authorizing construction to avoid costly rework or compliance issues.

Landlords and property managers coordinating landlord-paid allowances and approvals during lease negotiations.
Commercial tenants (retail/office) documenting scope, budget, and acceptance criteria for fit-out work.
General contractors and architects submitting cost, schedule, and permitting documentation for approval.

Who can sign a Tenant Improvement agreement

Authorized Signer

An individual with corporate authority such as an officer, property manager, or authorized agent must sign. If signing on behalf of a company, include the signer’s title and evidence of authority to bind the entity.

Contractor Representative

The contractor’s authorized representative signs the scope and price portions. Subcontractors do not sign the tenant-landlord TI unless party-to-party obligations require it.

Essential elements to include in a professional Tenant Improvement document

A complete TI document ensures responsibilities, timelines, and acceptance criteria are explicit to reduce disagreement during construction and handover.

Scope of Work

Detailed description of all work, materials, drawings, and finishes with references to attachments or plans.

Payment Terms

Who pays what (allowance, tenant-funded, landlord-funded), draw schedule, retainage, and invoicing conditions.

Permits & Approvals

Which party obtains permits, pays fees, and is responsible for code compliance and inspections.

Schedule & Milestones

Start and completion dates, interim milestones, and remedies or liquidated damages for delays.

Acceptance Criteria

How finished work is inspected, punchlist procedure, and final acceptance conditions for turnover.

Ownership & Removal

Who owns fixtures/improvements at lease end, and whether removal or restoration is required.

Step-by-step: preparing and executing a Tenant Improvement agreement

Follow these sequential actions to ensure the TI is complete, permitted, and ready for construction.

01

Gather Lease Details: Confirm lease clauses on TI allowance, restoration, and approvals.
02

Define Scope: Attach detailed plans, specs, and materials list for contractor bidding.
03

Obtain Permits: Identify required municipal permits and assign responsibility for filings.
04

Execute & File: Obtain signatures, notarization if required, and distribute fully executed copies.

How electronic completion and routing typically flows for a TI agreement

Digital workflows reduce delays and centralize records for TI approvals, permitting, and payments.

Upload Document: Sender uploads final TI PDF or DOCX and attaches plans as exhibits.
Place Fields: Add signature, initial, date, and conditional approval fields in the template.
Set Signers: Add landlord, tenant, contractor emails and define signing order.
Send & Track: Distribute via secure link; track viewing, signing, and download logs.

Configuring a digital workflow for Tenant Improvement approvals

Common workflow settings save time when repeatedly executing TI agreements across leases and projects.

Field	Configuration
Signature Authentication	Use email plus SMS code or stronger ID verification for high-value approvals
Conditional Fields	Show cost or removal clauses only when tenant-funded options are selected
Bulk Send	Enable for repeating standardized amendments across portfolios
Audit Trail	Capture IP, timestamps, and document history for compliance

Digital signing and platform capabilities to support Tenant Improvement documents

Ensure the chosen platform meets any applicable compliance needs such as HIPAA if documents include protected health information or privacy-sensitive tenant data.

File Formats: PDF and DOCX for contracts; drawings as PDF or CAD exports
Integrations: Connectors with Project Management and Storage systems simplify recordkeeping
Authentication: Multi-factor options and notarization integrations for enforceability

Common timelines and deadlines in Tenant Improvement projects

TI schedules combine contractual milestones, permit processing times, and inspection windows; track each separately to avoid delays.

Design Finalization:

Complete prior to permit submission to avoid rework

Permit Submission:

Allow 2–8 weeks depending on municipality and scope

Construction Period:

Defined in the TI schedule; include contingencies for inspections

Punchlist & Acceptance:

Typically 7–30 days after substantial completion

Warranty Period:

Often 1 year for workmanship; longer for equipment

Key milestones from negotiation to turnover

A numbered milestone sequence helps coordinate approvals, permitting, and handover activities for Tenant Improvements.

01

1. Lease / Allowance Agreed

Parties finalize allowance, responsibilities, and approval matrix.

02

2. Design & Specs Complete

Architects deliver construction drawings and technical specifications.

03

3. Permits Issued

Municipal approvals secured and posted at the site as required.

04

4. Substantial Completion

Work completed to permit inspections and tenant can occupy the space.

Common mistakes to avoid when preparing Tenant Improvement documents

Undefined scope that leads to frequent change orders and cost disputes.
Unclear permit responsibility resulting in inspection delays and penalties.
Missing owner/tenant restoration terms that trigger end-of-lease disagreement.
Incomplete signatory authority that invalidates approvals or delays execution.

Consequences of incomplete or incorrect Tenant Improvement paperwork

Permit Fines: Municipal fines and stop-work orders

Contract Damages: Cost recovery or delay-related damages

Mechanic's Liens: Unpaid contractors can file liens against the property

Insurance Gaps: Work not covered due to improper documentation

Invalid Signatures: Execution errors could render agreements unenforceable

Cost Overruns: Unallocated expenses passed to tenant or landlord

How Tenant Improvement agreements differ from related documents

Compare common document types to ensure you select the correct format for your objective.

Criteria	Tenant Improvement	Lease Amendment	Work Order
Primary Purpose	build-out terms	modify lease terms	direct contractor actions
Typical Parties	landlord / tenant	landlord / tenant	contractor / client
Formality	high	high	medium
Attachments	plans & permits	lease exhibit	scope documents

eSignature platform comparison for executing Tenant Improvement paperwork

Key pricing and capability points for common eSignature vendors. signNow is listed first per vendor comparison norms.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	Varies	Varies
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently asked questions about Tenant Improvement documents

Answers to common questions about execution, signing, and post-execution handling of TI agreements.

Need help? Contact support

How do I link a TI to the lease?
Reference the lease by date and section in the TI preamble and attach the lease exhibit or include the lease number to create a clear contractual linkage.
Can a TI be signed electronically?
Yes, electronic signatures are valid where parties consent and the e-signature process documents intent, attribution, and retention; exceptions may apply for certain notarized records.
Who pays permit fees?
The TI should state permit responsibility explicitly; common options are tenant-paid, landlord-paid, or reimbursed to the tenant via allowance.
Are notary or witness signatures needed?
Notarization requirements vary by jurisdiction and document type; some jurisdictions or instruments tied to property transfer may require notarization or witnesses.
How should change orders be handled?
Specify a written change order process with approval authority, price adjustments, and schedule impacts to avoid disputes.
How long should I retain TI records?
Keep executed TIs for the lease term plus at least 3–7 years; retain longer if tax, insurance, or litigation risk exists.

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