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TopicFree Rent Concessions in a Commercial Lease
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Free Rent Concessions

Whether you represent a tenant or a landlord in a lease negotiation, it is important to recognize that free rent concessions must be part of the equation. This is the…

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A

Abatement: The reduction or elimination of a portion of rent during the lease term. Commonly referred to as “free rent,” “rent abatement” or a “rent concession.” An abatement may be…

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C

Capitalization Rate (a.k.a. “Cap Rate”): The rate of return on a real estate investment property based upon the income that the property is expected to produce. A capitalization rate can…

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F

Façade: An exterior side of a building that is usually characterized as the front of the building. From an engineering perspective, the façade may have a significant impact on energy efficiency…

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M

Master Lease | Over Lease: The primary lease that all other leases (e.g. a sublease) are subordinate to. Material Inducement: Based on a representation by the tenant to perform or…

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S

Sale-Leaseback: A real estate sales transaction in which the owner of a property sells the property to a buyer, and after the closing of title to the property, the seller…

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