A commercial landlord offers a new tenant a rent-free period of three months at the beginning of a five-year lease. What is this incentive commonly called?
Correct Answer
A) A lease concession or rent abatement used to attract tenants
A rent-free period at the beginning of a lease is a common lease concession (also called rent abatement) used by landlords to attract tenants, especially in competitive markets. The tenant occupies the space without paying rent during the concession period.
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Previous Question
A developer leases a vacant lot for 99 years under a ground lease. The tenant builds a 10-story office building on the site. At the end of the ground lease term, who owns the building?
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A tenant leases 5,000 square feet of office space at $24 per square foot per year under a triple-net lease. Annual property taxes are $15,000, insurance is $5,000, and CAM costs are $10,000 for the building's 50,000 total square feet. What is the tenant's total annual cost including the NNN expenses?