Free Rent - October, 2014
Free rent is a term that comes and goes with commercial real estate leasing, depending on the strength of the market. In a tight, landlord controlled market, the term is rarely used. In a struggling, tenant controlled market, the opposite is true.
Free rent can be used as an incentive to lure new tenants into commercial space. It can also be used by landlords as an alternative to providing a tenant improvement allowance.
Some will confuse free rent with a build-out period. Most tenants expect to receive abated rent while building the interior of their space. This abatement period only becomes free rent if they are open for business and producing revenue prior to rent commencement.
Whether you are a landlord looking to avoid free rent, or a tenant looking to receive free rent, we understand and would enjoy the opportunity to tell you everything we know about it.