Concessions

Concessions are discounts, incentives, or benefits offered by a landlord to persuade a tenant to sign a lease or rental agreement. Concessions can take various forms, such as reduced rent, rent-free periods, waived or reduced security deposits, or contributions toward tenant improvements. Landlords may offer concessions to attract new tenants, retain existing tenants, or lease vacant spaces in a competitive market.

Concessions are commonly associated with leasing in various property types, such as multifamily, office, industrial, self-storage, and retail properties. The use and extent of concessions depend on market conditions, property characteristics, and the specific needs of tenants. While offering concessions can help landlords secure tenants and maintain occupancy, it is important to carefully balance the costs and benefits of concessions to ensure that they do not negatively impact the property's financial performance and long-term value.