Tenant Improvement Allowance Guide for Georgia Leases (2026)

If you are signing a commercial lease in Georgia, the tenant improvement allowance is one of the most important numbers in the deal. It decides how much of your build out the landlord pays for, and how much comes out of your pocket.

Here is how TI allowances actually work in Canton, Cherokee County, and across North Metro Atlanta in 2026, and how we help owners stretch them.

What a tenant improvement allowance is

A tenant improvement allowance, often called a TI allowance or TIA, is a dollar amount the landlord agrees to contribute toward building out a leased space for your business. It is usually expressed as dollars per rentable square foot. So a 4,000 sq ft space with a $40 per sq ft TI allowance gives you $160,000 toward the build out.

The landlord is not handing you a check. The allowance is paid out as the work progresses, usually against contractor invoices and lien waivers, after the landlord or their representative approves the plans and inspects the work.

Typical TI allowance ranges in North Metro Atlanta

Ranges shift with market conditions, but these are the numbers we see most often in 2026 for Canton, Woodstock, Alpharetta, Roswell, Marietta, and Cumming.

• Second generation retail or office, light refresh: $10 to $25 per sq ft
• Second generation space, moderate reconfiguration: $25 to $50 per sq ft
• First generation vanilla shell, retail or office: $40 to $80 per sq ft
• First generation restaurant: $50 to $125 per sq ft, sometimes higher for anchor tenants
• Medical and dental in a shell space: $60 to $120 per sq ft

Landlords usually offer more TI for longer lease terms, stronger credit, and larger footprints. A five year lease almost always carries a smaller allowance than a ten year lease in the same building.

What TI usually covers, and what it does not

TI is meant for permanent improvements to the space, the kind that stay behind when you leave. That typically includes:

• Demising walls, interior partitions, and doors
• Ceilings, lighting, and basic electrical distribution
• HVAC modifications and additional units when needed
• Plumbing rough in and finish for restrooms and break rooms
• Flooring, paint, and standard millwork
• Permit fees and architectural and engineering drawings, sometimes capped

What TI usually does not cover:

• Furniture, fixtures, and equipment, often called FF and E
• Specialty equipment like commercial kitchen hoods, walk in coolers, medical chairs, and dental compressors
• Signage and exterior branding
• Low voltage cabling, security, and AV in many leases
• Soft costs beyond a small cap

Every lease is different. Read the work letter carefully and ask your general contractor to mark up the lease exhibit before you sign, not after.

How the gap between TI and total build out cost works

In most build outs, the TI allowance does not cover the full project cost. The difference is the tenant's out of pocket, and it is where projects get into trouble when it is not planned for.

A simple example. A 3,500 sq ft full service restaurant in Canton, first generation shell, lands at roughly $350 per sq ft to build, or $1,225,000 total. The landlord offers $75 per sq ft TI, or $262,500. The tenant is funding the remaining $962,500 through cash, an SBA loan, or equipment financing.

Knowing that gap before lease signing is the whole point of bringing a general contractor in early.

How a general contractor helps bridge the gap

This is where the right GC pays for itself, often several times over.

• Pre lease budgeting. We walk the space with you, review the landlord work letter, and give you a real budget range before you sign. That gives you leverage to negotiate more TI, a longer free rent period, or landlord delivered work.
• Value engineering. We swap finish and system choices that protect the look and function of the space but reduce cost, so more of the build fits inside the allowance.
• TI draw management. We package invoices, lien waivers, and inspections the way the landlord requires, so the draws actually fund on time and you are not floating six figures of work for sixty days.
• Permit and code path. Cherokee County, Canton, Woodstock, Alpharetta, and the rest of North Metro Atlanta each have their own permitting quirks. We know what each jurisdiction will and will not approve, which keeps the schedule on track.
• Schedule alignment with rent commencement. Most leases start the rent clock on a fixed date or at substantial completion. We sequence the work to hit that date and avoid paying rent on a space you cannot open in.

How to negotiate a better TI allowance

A few things that consistently move the number in the tenant's favor:

• Bring a contractor pricing letter to the lease negotiation, not just an asking number
• Offer a longer term in exchange for higher TI
• Ask for landlord delivered work on big ticket items like HVAC and roof penetrations
• Request a TI amortization option, where the landlord funds extra TI and you repay it through rent
• Push for soft cost inclusion, especially architectural and permit fees

Common TI mistakes we see in Georgia

• Signing before pricing the build out, then discovering the allowance covers half the job
• Assuming the landlord work letter delivers more than it actually does
• Picking the lowest bid contractor, then losing the schedule and the TI draw timing
• Skipping a code review on second generation space, then finding out the existing HVAC, restrooms, or grease trap need to be replaced
• Treating FF and E as part of the build budget instead of a separate line

Why owners hire Nobo for TI work

Nobo Construction Group is a family owned commercial general contractor in Canton, Georgia. We work with owners, investors, brokers, and tenants on TI build outs across Cherokee County and North Metro Atlanta. Licensed and insured, real budgets, real schedules, real coordination with your landlord and broker.

If you are evaluating a space or negotiating a lease right now, talk to us before you sign. We respond within 24 hours.