Commercial Property Tenant Tip: Spread Out Free Rent
Because of the economy, some commercial property owners are willing to give tenants free rent to entice them to sign leases. You can get the most out of a free rent offer by spreading it out over the course of the lease.
When negotiating free rent with the owner of the shopping center or office building you are planning to move into, try to secure a lease that allows you to occupy the space as follows: for free for a few months; a 50 percent discount of the asking rent for the next few months: and at market rent for the remainder of the lease term.
Securing free and low rents at the beginning of a lease term can help tenants with new businesses get them off the ground and give older tenants room to adjust to any increased costs they might be dealing with as a result of a move, such as higher CAM charges.