Lot 2 SBO, LLC v. Twitter, Inc. n/k/a X Corp.: Colorado Appeals Court Reverses $8.2M Boulder Office Rent Judgment Over Tenant-Improvement Rent Credit

The Colorado Court of Appeals reversed an $8.2 million rent judgment against X Corp. (formerly Twitter) over its Boulder office lease, holding the tenant-improvement rent credit applied automatically.

On October 22, 2026, a unanimous Colorado Court of Appeals panel reversed the Boulder County judgment that had held Twitter, now X Corp., liable to landlord Lot 2 SBO, LLC for about $8.2 million in unpaid rent and expenses on a 64,557-square-foot office building in Boulder. The panel held that the lease's tenant-improvement rent credit took effect automatically once the build-out reached the lease threshold and the tenant gave written notice, whether or not the landlord had yet received lien-clearing draw documents. It did not enter judgment for X. It sent the case back to the trial court with directions.

Why it matters

The ruling shows how a lease's tenant-improvement allowance mechanics can decide whether a tenant who holds back rent is in default or is simply using a credit it earned. Landlords who make TI credits depend on lien waivers or draw packages need to say clearly that the paperwork is a condition of the credit, not only of the cash payout. Tenants get a reminder that applying a disputed credit against rent can lead to eviction and an eight-figure trial judgment before an appeals court sides with them.

Case timeline · 5 entries Latest: October 22, 2026 — Court of Appeals reverses judgment and remands with directions

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