Amortization of Upfit
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[{"id": "dfiper8", "text": "LL Prospective: it would depend if the upgrades are value-add to the asset. If they are, the Landlord might be open to repayment of less (than the actual cost or lower rate on the amort.) as the improvements would make the building more marketable in the future. If not, I would throw more repayment back onto the Tenant.  Also depends on the term, size of the lease, and income the lease generates. I always ask for something in return from the Tenant - more term on the lease or more of the shared cost. Also, is this occurring at renewal/extension/expansion? If so, more leverage for the Tenant.\n\nIn your scenario i'd be curious to understand why you are only amortizing $75k. Seems small but a number of moving pieces in these situations.", "replies": [], "depth": 1}]