Lease Incentives: Rent-Free vs Fitout Contributions
Evaluating incentives offered by property owners to secure quality tenants and calculating your true effective rent.
What Are Commercial Lease Incentives?
Lease incentives can include: Rent-free periods (months exempt from base rent), Rent Abatements (spread across the term as a discount), or Landlord Fitout Contributions (interior fitout cost subsidies).
Face Rent vs Effective Rent
The effective rent represents the actual average annual rental cost after amortizing the total value of the lease incentive across the entire lease term.
Disclaimer: The estimations and rules detailed on this platform do not constitute legal or financial advice. Always verify metrics with a certified property professional, licensed accountant, or qualified commercial lawyer before entering into or executing any lease contract.