7 Strings Attached to the Tenant Allowance Trap
Not asking these questions before signing a leasing agreement could be costly.
Restaurateurs, and their real estate representatives, often take great pride in how much tenant allowance money they extract from a landlord as part of a lease transaction. While it’s true that landlord-funded tenant build out can potentially preserve cash reserves and limit the need to draw down on that line of credit, be careful, these deals often come with strings attached that are not apparent until after the lease is signed or the restaurant is open for business.
There are several reasons that a landlord will offer tenant