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.

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.