Concession

Lease concessions are discounts, incentives, or benefits conceded by a landlord to a tenant to conclude a commercial lease transaction.

Lease concessions may consist of free rent, tenant improvement allowances, deferred or reduced lease escalations, signage, or parking. Any benefit a landlord can offer a tenant to discount or defer rent, or accommodate the tenant is a lease concession.

Lease concessions are generally negotiated between the tenant and landlord, however some lease concessions are offered by landlords looking to entice tenants during difficult markets. As this implies, market conditions impact the ability of tenants to benefit from lease concessions.

As market experts, brokerage professionals can advise and negotiate lease concessions on behalf of the tenants they represent.