Tenant improvements allowance is a contractual provision within real estate market in the United States that has been used in Colombian real estate market in commercial leases, through which the landlord delivers some money to the tenant to execute improvement within the premise. The allowance may include a financial component to be amortized by tenant during lease term. This paper describes the tenant improvements allowance clause and analyses it under Colombian law. This paper also gives a contribution of key issues during the structuring and drafting of tenant improvement allowance clauses.
