Concessions
Concessions are negotiated incentives offered to induce a sale or lease (for example, free rent periods, landlord work, tenant improvement allowances, or credits). Concessions change the effective economics of a deal without necessarily changing the headline rent or price.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Offer / Negotiation
- Property types
- Residential, Commercial (Retail/Office/Industrial)
Read more in the Knowledge Base
- Understanding Effective Rent and ConcessionsRenters
- The Psychology of the Seller - What Motivates ConcessionsBuyers
- Renting in Long Island City - What to ExpectRenters
- Rent Concession Structures - Free Months, Reduced Rent, and Net Effective RentLandlords
- The Concession ParadoxLandlords
Related terms
Marketing and Listing Terms
- Asking Price / Asking Rent
- Co-Brokering
- Days on Market (DOM)
- Letter of Intent (LOI)
- Listing
- Multiple Listing Service (MLS)
- Offering Memorandum (OM)
- Residential Listing Service (RLS)
- Term Sheet
- Universal Co-Brokerage Agreement (UCBA)
General information, not legal, tax or financial advice.