Commercial

Tenant Improvement Allowance in Vancouver: How It Works

September 1, 2025
By QUAY Construction

When you lease commercial space in Vancouver, the landlord may offer a tenant improvement allowance (TIA): money toward building out the space for your business. This guide explains how allowances work, how they relate to landlord’s work, and how to check whether the allowance on offer covers what you actually need to build. For the construction side, see our tenant improvements page.

What is a tenant improvement allowance?

A tenant improvement allowance is a contribution from the landlord toward the tenant’s construction work. It is negotiated as part of the lease, so the amount, and what it can be spent on, changes from one deal to the next. There is no standard figure: the only allowance that matters is the one written into your lease.

Allowance vs landlord’s work

Commercial leases usually split construction into two parts, set out in a schedule to the lease:

Landlord’s work brings the unit to the agreed starting point, often called base building or shell condition: things like services to the unit, base heating and ventilation, sprinkler mains and demising walls.
Tenant’s work turns that shell into your business space: interior walls, ceilings, lighting, power and data, washrooms, kitchens, millwork and finishes.

The allowance usually goes toward the tenant’s work. See the full breakdown in landlord’s work vs tenant’s work.

How to test an allowance before you sign

An allowance only makes sense next to a construction budget. Use the planning ranges in our commercial renovation cost guide to estimate your build, then compare:

Type of space	Typical construction cost per sq ft (2026)
Office refresh	$90 to $150
Office full build-out	$150 to $250
Retail store	$100 to $220
Café or quick-service restaurant	$180 to $260
Full-service restaurant	$250 to $400+
Medical clinic	$180 to $300
Dental clinic	$220 to $400

The ranges exclude design and engineering fees, permit fees, furniture, IT and AV, signage, specialty equipment and GST. If the gap between your estimated build and the allowance doesn’t work for your business, it’s better to know before you commit to the space.

Questions to settle with the landlord

Which items are landlord’s work, and what condition will the unit be in at handover?
What can the allowance be spent on, and how and when is it paid out?
Does the building require approved trades, insurance, deposits or after-hours work?
Who handles permits, and what happens if the permit review asks for extra work?

How QUAY helps before the lease is signed

QUAY can walk the unit with you and review the landlord’s and tenant’s work schedules from a construction point of view. We point out gaps such as an electrical service too small for a commercial kitchen or ventilation that won’t suit new rooms, and give you a budget to compare against the allowance on offer. Lease terms themselves should be reviewed by your lawyer or leasing advisor.

Landlords and property managers can also use QUAY to build tenant improvements on their behalf, so the allowance is spent on a defined, fixed-price scope. See our services for landlords and property managers.

How QUAY prices and delivers the work

Every QUAY project starts with a site visit and your drawings or brief. You then get a detailed fixed-price proposal that lists the scope, inclusions, exclusions and allowances, agreed before construction begins. One project manager is your point of contact from approval to handover, noisy work can be scheduled after hours and on weekends, and applicable work is covered by our 365-day workmanship warranty. Learn more about our process.

Tenant improvement allowance questions

How much is a typical tenant improvement allowance in Vancouver?

There is no fixed amount. Allowances are negotiated deal by deal and depend on the landlord, the building, the lease term and the condition of the unit.