What are improvements made to leased property to accommodate the tenant called?

Improvements made to leased property specifically to accommodate the needs of a tenant are referred to as tenant improvements. These enhancements can include modifications or upgrades to the interior spaces, such as installing new partitions, flooring, lighting, or other features specific to the tenant's business requirements. Tenant improvements are typically negotiated in the lease terms, where the landlord may agree to fund a portion of the costs or provide credits to the tenant.

This distinction is important in the realm of real estate leasing as it outlines the responsibilities and rights of both landlords and tenants regarding modifications to the property. Understanding tenant improvements is crucial for both parties to ensure that the leased space meets operational needs while also maintaining the property's value. The terminology emphasizes the tenant's need for a suitable operational environment, differentiating it from general property improvements that might not cater specifically to tenant requirements.