Rental Concession

Definition of "Rental concession"

Reduction in the normal rental charge to attract prospective tenants or keep
existing tenants at lease renewal. Discounts may be given to obtain a higher occupancy rate, make it
easier of the owner to derive bank financing, induce a large retailer to relocate, or stimulate a
longer term lease with the tenant. A concession may also be in the form of one extra month of rental
free for every two years. The property's value is worth less because the rental income base is

Search Real Estate Glossary

Related Real Estate Glossary terms

Related Real Estate FAQ