Tenant Allowance calculation help

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Hi there. I have a commercial property that's 1020sq/ft. I just signed on new tenants for three years, who have moved in. They will pay $36per sq/ft for the first year. Then $37.26 the second, $38.56 the third, with an option year at $39.91. I had a commercial broker draft the lease. 

The lease has a tenant allowance clause that stipulates: "Provided the Tenant is not in default of its Lease, Landlord shall grant Tenant an additional allowance of $5.00 per square foot to be used toward as improving the Premises including moving costs, furniture, fixtures, equipment, cabling/network costs."

The tenant noted they've incurred both moving costs and furniture costs to move in. They would like tenant allowing towards one of these if applicable.

As an amateur commercial landlord, not using a property manager, how do I calculate this amount? What would you offer toward the tenant allowance?
Thank you!




I’m not experienced in the commercial space, but the clause says the allowance goes toward improving the premises. The way I’m reading it, simply moving in wouldn’t qualify for an allowance.