Tenant Improvement Overage Clause Samples

The Tenant Improvement Overage clause defines how costs exceeding the agreed-upon tenant improvement allowance are handled in a lease agreement. Typically, this clause states that if the expenses for customizing or upgrading the leased premises surpass the landlord’s contribution, the tenant is responsible for paying the additional amount, often within a specified timeframe or as part of rent. This ensures that any enhancements beyond the standard scope are funded by the party requesting them, thereby allocating financial responsibility and preventing disputes over unexpected construction costs.