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Mind The Gap
The tenant improvement gap, that is.
What does a brick-and-mortar need growth capital for? 9/10 times, for financing a new location.
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/1df6ee55-2f43-45b9-8494-06d3c28c68bd/image.png?t=1709055084)
The good news: When a business signs a lease, developers often provide “Tenant Improvement” or “Tenant Allowance” to brick-and-mortars – it’s a term that simply means, we’ll help you build out the location by financing part of it.
The not-so-good news: While a useful instrument, it rarely covers the entire buildout – this rings especially true as interest rates rise and developers pull back on the instrument altogether. Said differently, at a time when businesses need the capital the most, it’s least available.
Where else are businesses to go? Banks? (Interest rates!)
There’s a clear gap – and a clear need – where a network of private investors can play: providing buildout capital to brick-and-mortars.
And that’s just where Bonside plays.