What TI and Free Rent Look Like in Fort Worth Right Now
Tenant improvements (TI) and free rent are two of the most significant concessions in commercial lease negotiations. Understanding current market norms helps you negotiate optimal terms.
Understanding TI and Free Rent
Tenant Improvement (TI) Allowance:
A cash contribution from the landlord toward customizing space, typically quoted per rentable square foot.
Free Rent (Rent Abatement):
A period during which no base rent is due, serving to offset buildout time and reduce effective rent.
Current Fort Worth Market Conditions (2026)
The market has shifted to a more balanced dynamic, with tenants having more negotiating leverage than 2021-2023.
TI Benchmarks by Property Type
Office Space:
| Term | Class A | Class B |
|------|---------|---------|
| 5-year | $35-$50 PSF | $20-$35 PSF |
| 7-year | $45-$65 PSF | $30-$45 PSF |
| 10-year | $55-$80 PSF | $40-$55 PSF |
Industrial/Warehouse:
Retail:
Free Rent Benchmarks
| Term | Office | Industrial | Retail |
|------|--------|------------|--------|
| 5-year | 4-6 months | 1-3 months | 2-4 months |
| 7-year | 6-8 months | 3-5 months | 4-6 months |
| 10-year | 8-12 months | 4-6 months | 6-8 months |
Rule of Thumb: Expect approximately 1 month of free rent per year of lease term.
Negotiation Strategies
Strategy 1: Quantify Your Buildout Needs
Obtain construction estimates before negotiating for credibility and justification.
Strategy 2: Leverage Competition
Never negotiate with only one landlord.
Strategy 3: Trade Economics
Accept lower TI for reduced rent, or extend term for increased concessions.
Frequently Asked Questions
Is TI money or a credit?
TI is typically a credit applied to construction costs, not cash in your pocket.
Can I use TI for furniture and fixtures?
Sometimes negotiable. Many landlords limit TI to permanent improvements.
Should I prioritize TI or free rent?
Depends on your buildout needs. Calculate the economic value of each.
Contact Daniel Weber to discuss your Fort Worth lease negotiation.
Written by
Daniel WeberExpert commercial real estate advisor at SVN Trinity Advisors, helping investors and businesses navigate the Fort Worth market.