Transform Your Space.
Without the Upfront Cost.
Whether you're building out a new office, renovating a retail space, or upgrading a medical facility — finance your tenant improvements through CRE loans, SBA programs, or commercial credit lines.
Making a Commercial Space Work for Your Business
Tenant improvements (TI) are modifications made to a commercial space to meet the specific needs of a business tenant or owner-occupant. These range from basic cosmetic updates to full-scale interior construction.
For business owners purchasing a building through an SBA 504 or conventional CRE loan, TI costs can often be rolled into the mortgage — eliminating the need for a separate construction loan or out-of-pocket payment.
For tenants leasing space, TI allowances are negotiated as part of the lease. When the landlord's allowance falls short, tenant improvement financing bridges the gap.
Three Ways Tenant Improvements Get Funded
The funding structure depends on whether you own the building, lease it, or are purchasing it.
How to Finance Tenant Improvements
Four financing structures cover most TI scenarios. The best fit depends on whether you own or lease, and the scale of the buildout.
TI costs included in the total project cost. One loan covers purchase + renovation. Requires 51%+ occupancy.
Can combine real estate purchase, TI, equipment, and working capital in one loan. Variable rate. More flexible than 504.
If you already own the property, pull equity to fund TI. Works for both owner-occupied and investment properties.
Best for phased buildouts. Draw funds as construction progresses. Higher rate but maximum flexibility. Works for tenants who don't own the building.
TI Cost Ranges by Space Type
Costs vary dramatically by property type, local market, and scope of work. These ranges are industry benchmarks.
How TI Financing Works
Scope Your Buildout
Work with your contractor or architect to define the scope of work and get construction bids. A detailed cost breakdown helps lenders evaluate and approve your project faster.
Submit to BestLoanUSA
Share your property details, buildout scope, cost estimates, and business financials. If you're buying the building, include the purchase contract. No hard credit pull at this stage.
Advisor Review
We recommends the best financing structure: roll into SBA 504, use SBA 7(a) for combined needs, pull equity via cash-out, or set up a standalone credit line for phased construction.
Lender Matching
We match your project to lenders experienced in construction draws, TI escrows, and phased disbursements. You receive competing term sheets.
Approval & Draw Schedule
Lender approves the project and sets up a draw schedule tied to construction milestones. Funds are released as work is completed and inspected.
Build & Occupy
Construction proceeds with draws. Once complete, the loan converts to permanent financing (if applicable). You occupy your newly built-out space.
Ready to Finance Your Buildout?
No credit pull. No commitment. Find the right financing for your tenant improvement project.
Frequently Asked Questions
Yes. Both SBA 504 and SBA 7(a) allow you to include TI costs in the total project financing when you're purchasing the building. This means one loan, one closing, and one monthly payment covering both the property and the buildout.
TI allowances vary by market, property class, and lease term. Class A office space in major metros may offer $40–$80/sf. Retail and industrial spaces typically offer $10–$30/sf. Longer lease terms (7–10 years) generally command higher allowances since the landlord amortizes the cost over more years.
A TI allowance is money the landlord provides as part of your lease — it's not a loan, and you don't repay it directly (it's built into your rent economics). A TI loan is separate financing you take out to cover buildout costs that exceed the allowance or when you own the building and need capital for improvements.
Yes. If you already own the building, a CRE cash-out refinance lets you pull equity from the property to fund improvements. Alternatively, a commercial line of credit gives you flexible draws during construction. Both work for owner-occupied and investment properties.
Most lenders use a draw schedule tied to construction milestones. As each phase is completed (demolition, framing, mechanical, finish), an inspector verifies the work and the lender releases the next draw. This protects both the borrower and lender during construction.
Typical docs include: detailed construction bid or contractor estimate, scope of work with plans/drawings, 2 years of business tax returns, current P&L, bank statements, lease agreement (if tenant), and purchase contract (if buying). For SBA loans, additional SBA-specific forms are required.