Monday, February 9, 2009

Tenant Improvements vs. Free Rent

I saw an interesting article in this week's San Jose/Silicon Valley Business Journal regarding the move from tenant improvement dollars to free rent as an incentive to Tenants.

The consensus of the article is that landlords are offering free rent rather than tenant improvements is order to get tenants to sign leases. Apparently, this is a break from previous downturns, but it does make a lot of sense when you figure that everyone is trying to conserve cash.

Here's a couple of questions that I have:
  1. Are you seeing this in the leases that you are doing?
  2. Does it depend on the size of the property?
  3. If you are getting or giving free rent, how many months?
Your comments are always appreciated. Thanks for reading.

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