Rental Concession


Definition of "Rental concession"

Jo Carol  Thomspon
  Talk To Tucker Realtors

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
lower.



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