The rent concession
and the work letter are two "common" inducements in lease negotiations, and therefore deserve our attention.
But she suggested some guidelines: If tenants appear to be stable and simply affected by the recent downturn in the market, they receive a short-term rent concession
. Typically, the landlord claims a right to recapture lost rent later on.
In calculating the values of a rent concession
, the first step is to convert the monthly concession into a present value.
Thus, the free rent concession
means that $36,000 may be treated as an outflow for the first six months of the lease.
With Equis renegotiating their lease, Axis was able to maintain its existing lease rate and save other costs over the life of the lease, including unamortized tenant improvements and rent concession
In this situation we did an upfront rent concession
of up to two months of free rent to get the units moving, and prorated these specials until we hit target points.
Soon after that, the company raised rents, "and by the middle of December of '09, we were about 85 percent leased," said Jacob, noting that Glenwood has now eliminated the free rent concession
in all of its buildings.
To that end, Cassidy Turley's Not-for-Profit Group worked to lock in a deal at an advantageous rent for a premier location, and negotiate a generous work letter and free rent concession
for The Aspen Institute."
When vacancies are high, some tenants will move in only after securing a six-or-nine-month free rent concession
. Just prior to commencement of rent payments the tenant disappears and moves on to the next landlord who will also give a free rent concession
Around 1,800 of Punch Taverns' 8,000-plus pubs have been offered some form of rent concession
or additional discount on beer.
A tenant who has serious financial problems is likely to ask for help, usually in the form of a rent concession
. Before suggesting solutions to the property owner, you should obtain the tenant's current financial statement.
The property's net operating income (NOI) is expected to improve in 2018 once the free rent concession