What Concessions Can I Ask for Besides Free Rent?

Curated by Kory White · Fractional CRO, CRO Syndicate

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📅 Published Jun 21, 2026 · Updated Jun 21, 2026

Don’t get screwed.</text><text x="58" y="258" font-family="Arial,Helvetica,sans-serif" font-size="30" font-weight="600" fill="#6b5b4d">Leases, TI, NNN & buildouts — negotiated in your favor</text><g transform="translate(1010,86)" fill="none" stroke="#C0531F" stroke-width="9" stroke-linejoin="round"><rect x="20" y="40" width="150" height="130"/><line x1="20" y1="40" x2="95" y2="6"/><line x1="170" y1="40" x2="95" y2="6"/><rect x="50" y="80" width="36" height="36"/><rect x="104" y="80" width="36" height="36"/><rect x="74" y="128" width="42" height="42"/></g></svg>

What Concessions Can I Ask for Besides Free Rent?

Direct Answer

Free rent is the concession everyone fixates on — and it's the *least* of what's available. A well-represented tenant pulls a stack of concessions, each worth real money: TI allowance ($20–$80/sq ft), moving allowance ($2–$10/sq ft), escalation caps (2–3% vs. 4%+), early termination options, expansion and contraction rights, operating-expense (CAM) caps, a free parking allotment, and a renewal option at a pre-set rate.

Stacked together, these often dwarf the value of an extra month or two of free rent.

The reason matters: landlords protect face rent because it sets the building's valuation comps and their loan terms. So they prefer to give value through everything *except* the headline rate. That's your opening — pile on the non-rent concessions, because the landlord can grant them without hurting the rent roll.

A 10,000 sq ft tenant who wins $50/sq ft TI ($500,000), a 3% escalation cap instead of 4%, and an early termination option has captured far more value than the tenant who only haggled free rent.

The move: build a written concession stack, attach it to a term commitment, and let the landlord choose which levers to pull — every one of them lowers your net effective rent.

Here's the menu, ranked by typical dollar value:

Concession	Typical range	Why it matters
TI allowance	$20–$80/sq ft	Landlord funds your buildout — the biggest non-rent prize
Free rent / abatement	1 month per year of term	Front-loaded cash relief
Escalation cap	2–3% vs. 4%+	Compounds over the whole term
Operating expense / CAM cap	3–5% annual on controllables	Stops cost creep on your pass-throughs
Moving allowance	$2–$10/sq ft	Covers relocation/IT cabling
Early termination option	Year 3–5, defined fee	Buys back flexibility
Expansion rights / ROFR	Adjacent space	Room to grow at known terms
Contraction option	Give back 20–30%	Room to shrink
Renewal option	Pre-set or capped rate	Locks future leverage
Free/reduced parking	Per-stall waiver	Real money in dense markets

Each lever reduces your real cost. CBRE, JLL, and Cushman & Wakefield occupier teams all coach tenants to negotiate the package, not the headline — because the package is where landlords hide (and give) the actual value.

flowchart TD A[Concession stack] --> B[TI allowance $20-80/sq ft] A --> C[Escalation cap 2-3%] A --> D[CAM/opex cap] A --> E[Moving allowance $2-10/sq ft] A --> F[Flexibility options] F --> G[Early termination] F --> H[Expansion + contraction] F --> I[Renewal at preset rate] B --> J[Lower net effective rent] C --> J D --> J E --> J

The Money Concessions: TI, Escalations, and CAM

These three move the most dollars.

Tenant improvement allowance is the heavyweight. New leases command $30–$80/sq ft for office buildout; even renewals fund $10–$40/sq ft. Demand a cash allowance with a draw schedule (not reimbursement-only, which forces you to front the cash), and require unused TI to convert to rent credit so the landlord can't pocket the difference.

Escalation caps are quietly enormous. The difference between 3% and 4% annual bumps on a $400,000/yr lease over 7 years is roughly $90,000 in cumulative rent. Cap escalations at 2–3%, or negotiate a flat Year-1 step.

Operating-expense / CAM caps protect you on pass-throughs. Landlords pass building costs — taxes, insurance, maintenance — to tenants. Without a cap, "controllable" expenses can climb 5–8% a year.

Negotiate a 3–5% cap on controllables, demand a base-year definition (gross leases), and secure audit rights so you can verify the charges. BOMA and IREM both publish the operating-expense methodologies landlords use — knowing them lets you challenge inflated pass-throughs.

The Flexibility Concessions: Don't Get Trapped

Money concessions lower cost; flexibility concessions protect you from being trapped in the wrong space.

Early termination option: the right to exit at, say, Year 3 for a defined fee (typically 6–9 months' rent + unamortized TI and commissions). Worth its weight if your forecast is uncertain.
Expansion rights / right of first refusal (ROFR): if you grow, you get first crack at adjacent space at pre-agreed terms — no scramble, no relocation.
Contraction option: give back 20–30% of your space at a defined date if you shrink, so you're not paying for empty floors.
Renewal option: extend at a pre-set rate or a capped "fair market value," preserving your leverage at expiration.
Sublease/assignment rights: with reasonable (not absolute-discretion) landlord consent, so you can offload space if plans change.

These cost the landlord almost nothing to grant up front but can save you hundreds of thousands if your needs change — which is exactly why you negotiate them while you have leverage, not when you're desperate.

flowchart LR A[Want flexibility] --> B[Early termination option] A --> C[Expansion + ROFR] A --> D[Contraction option] A --> E[Renewal at preset rate] A --> F[Sublease/assignment rights] B --> G[Exit fee 6-9 months + unamortized] C --> H[Grow without relocating] D --> I[Shrink without paying for empty space] G --> J[Protected across the term] H --> J I --> J

The Overlooked Concessions

Easy wins tenants forget to ask for:

Moving allowance: $2–$10/sq ft to cover relocation, cabling, and IT — separate from TI.
Free or reduced parking: in dense markets a stall runs $100–$400/month; waiving even 20 stalls is real annual money.
Signage rights: building or monument signage at no extra cost — valuable for retail and brand visibility.
HVAC after-hours: free or capped after-hours HVAC if your team works late.
Cure/self-help rights: if the landlord fails to fund TI or make repairs, you can offset against rent.
Construction rent abatement: free rent during the buildout period so you're not paying for space you can't occupy.

Ask for all of them. The marginal cost of adding line items to your RFP is zero, and landlords routinely concede the small ones to protect the face rate.

How to Stack and Win Them

Hire a tenant-rep broker — landlord-paid, pulls comps, and knows which concessions are live in your market.
Get a competing term sheet so the landlord knows you can walk.
Submit a written RFP listing every concession with target numbers — anchor high across the whole stack.
Tie the stack to your term commitment: "We'll do 7 years for this package."
Let the landlord choose levers — they'll protect face rent and give on TI, escalations, and flexibility. Take it.
Lock the mechanics in the lease: draw schedules, caps, audit rights, defined termination fees.

FAQ

What's the single most valuable concession besides free rent? The TI allowance — $20–$80/sq ft of landlord-funded buildout. On a 10,000 sq ft space at $50/sq ft, that's $500,000, far more than a couple months of free rent.

Why do landlords prefer giving concessions over cutting face rent? Face rent sets the comps that drive the building's valuation and the landlord's loan terms. Concessions like TI, free rent, and escalation caps lower your real cost without hurting the rent roll — so landlords give there first.

How much can an escalation cap save me? Capping annual bumps at 3% instead of 4% on a $400,000/yr lease saves roughly $90,000 over a 7-year term. Escalation caps compound, so they're worth fighting for.

What flexibility concessions should I prioritize? An early termination option, expansion/contraction rights, and a renewal option at a pre-set rate. They cost the landlord little up front but protect you from being trapped if your space needs change.

What concessions do tenants most often forget to ask for? Moving allowance ($2–$10/sq ft), free parking, construction-period rent abatement, CAM/opex caps with audit rights, and self-help cure rights. Adding them to your RFP costs nothing and landlords often concede the smaller ones readily.

Sources

CBRE, "Occupier Services: The Full Concession Package Beyond Free Rent"
JLL, "Lease Negotiation: TI, Escalations, and Flexibility Concession Benchmarks"
Cushman & Wakefield, "Tenant Advisory: Building a Concession Stack"
NAIOP, "Net Effective Rent and Concession Economics"
BOMA International, "Operating Expense Pass-Through and CAM Methodology"
IREM, "Income/Expense Analysis and Lease Concession Trends"
The Tenant Advisor (tenant-rep brokerage), "Concessions to Negotiate Besides Free Rent"

Keep reading

<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1200 340" role="img" aria-label="What Concessions Can I Ask for Besides Free Rent? — PULSE Buildouts"><rect width="1200" height="340" fill="#EBE9DE"/><rect width="14" height="340" fill="#C0531F"/><text x="58" y="116" font-family="Arial,Helvetica,sans-serif" font-size="32" font-weight="800" letter-spacing="3" fill="#C0531F">PULSE BUILDOUTS · COMMERCIAL REAL ESTATE</text><text x="56" y="198" font-family="Arial,Helvetica,sans-serif" font-size="60" font-weight="800" fill="#2b2b2b">Save money. Don’t get screwed.</text><text x="58" y="258" font-family="Arial,Helvetica,sans-serif" font-size="30" font-weight="600" fill="#6b5b4d">Leases, TI, NNN &amp; buildouts — negotiated in your favor</text><g transform="translate(1010,86)" fill="none" stroke="#C0531F" stroke-width="9" stroke-linejoin="round"><rect x="20" y="40" width="150" height="130"/><line x1="20" y1="40" x2="95" y2="6"/><line x1="170" y1="40" x2="95" y2="6"/><rect x="50" y="80" width="36" height="36"/><rect x="104" y="80" width="36" height="36"/><rect x="74" y="128" width="42" height="42"/></g></svg>

# What Concessions Can I Ask for Besides Free Rent?

## Direct Answer

Free rent is the concession everyone fixates on — and it's the *least* of what's available. A well-represented tenant pulls a **stack** of concessions, each worth real money: **TI allowance ($20–$80/sq ft)**, **moving allowance ($2–$10/sq ft)**, **escalation caps (2–3% vs. 4%+)**, **early termination options**, **expansion and contraction rights**, **operating-expense (CAM) caps**, a **free parking allotment**, and a **renewal option at a pre-set rate**. Stacked together, these often dwarf the value of an extra month or two of free rent.

The reason matters: landlords protect **face rent** because it sets the building's valuation comps and their loan terms. So they prefer to give value through everything *except* the headline rate. That's your opening — pile on the non-rent concessions, because the landlord can grant them without hurting the rent roll. A **10,000 sq ft** tenant who wins **$50/sq ft TI ($500,000)**, a **3% escalation cap** instead of **4%**, and an **early termination option** has captured far more value than the tenant who only haggled free rent.

The move: build a written concession stack, attach it to a term commitment, and let the landlord choose which levers to pull — every one of them lowers your **net effective rent**.

## The Full Concession Menu

Here's the menu, ranked by typical dollar value:

| Concession | Typical range | Why it matters |
|-----------|--------------|----------------|
| **TI allowance** | **$20–$80/sq ft** | Landlord funds your buildout — the biggest non-rent prize |
| **Free rent / abatement** | **1 month per year of term** | Front-loaded cash relief |
| **Escalation cap** | **2–3%** vs. 4%+ | Compounds over the whole term |
| **Operating expense / CAM cap** | **3–5%** annual on controllables | Stops cost creep on your pass-throughs |
| **Moving allowance** | **$2–$10/sq ft** | Covers relocation/IT cabling |
| **Early termination option** | Year 3–5, defined fee | Buys back flexibility |
| **Expansion rights / ROFR** | Adjacent space | Room to grow at known terms |
| **Contraction option** | Give back 20–30% | Room to shrink |
| **Renewal option** | Pre-set or capped rate | Locks future leverage |
| **Free/reduced parking** | Per-stall waiver | Real money in dense markets |

Each lever reduces your real cost. **CBRE, JLL, and Cushman & Wakefield occupier teams all coach tenants to negotiate the package, not the headline** — because the package is where landlords hide (and give) the actual value.

```mermaid
flowchart TD
    A[Concession stack] --> B[TI allowance $20-80/sq ft]
    A --> C[Escalation cap 2-3%]
    A --> D[CAM/opex cap]
    A --> E[Moving allowance $2-10/sq ft]
    A --> F[Flexibility options]
    F --> G[Early termination]
    F --> H[Expansion + contraction]
    F --> I[Renewal at preset rate]
    B --> J[Lower net effective rent]
    C --> J
    D --> J
    E --> J
```

## The Money Concessions: TI, Escalations, and CAM

These three move the most dollars.

**Tenant improvement allowance** is the heavyweight. New leases command **$30–$80/sq ft** for office buildout; even renewals fund **$10–$40/sq ft**. Demand a **cash allowance with a draw schedule** (not reimbursement-only, which forces you to front the cash), and require **unused TI to convert to rent credit** so the landlord can't pocket the difference.

**Escalation caps** are quietly enormous. The difference between **3%** and **4%** annual bumps on a **$400,000/yr** lease over **7 years** is roughly **$90,000** in cumulative rent. Cap escalations at **2–3%**, or negotiate a flat Year-1 step.

**Operating-expense / CAM caps** protect you on pass-throughs. Landlords pass building costs — taxes, insurance, maintenance — to tenants. Without a cap, "controllable" expenses can climb **5–8%** a year. Negotiate a **3–5% cap on controllables**, demand a **base-year** definition (gross leases), and secure **audit rights** so you can verify the charges. BOMA and IREM both publish the operating-expense methodologies landlords use — knowing them lets you challenge inflated pass-throughs.

## The Flexibility Concessions: Don't Get Trapped

Money concessions lower cost; flexibility concessions protect you from being trapped in the wrong space.

- **Early termination option**: the right to exit at, say, **Year 3** for a defined fee (typically **6–9 months' rent + unamortized TI and commissions**). Worth its weight if your forecast is uncertain.
- **Expansion rights / right of first refusal (ROFR)**: if you grow, you get first crack at adjacent space at pre-agreed terms — no scramble, no relocation.
- **Contraction option**: give back **20–30%** of your space at a defined date if you shrink, so you're not paying for empty floors.
- **Renewal option**: extend at a **pre-set rate** or a capped "fair market value," preserving your leverage at expiration.
- **Sublease/assignment rights**: with reasonable (not absolute-discretion) landlord consent, so you can offload space if plans change.

**These cost the landlord almost nothing to grant up front** but can save you hundreds of thousands if your needs change — which is exactly why you negotiate them while you have leverage, not when you're desperate.

```mermaid
flowchart LR
    A[Want flexibility] --> B[Early termination option]
    A --> C[Expansion + ROFR]
    A --> D[Contraction option]
    A --> E[Renewal at preset rate]
    A --> F[Sublease/assignment rights]
    B --> G[Exit fee 6-9 months + unamortized]
    C --> H[Grow without relocating]
    D --> I[Shrink without paying for empty space]
    G --> J[Protected across the term]
    H --> J
    I --> J
```

## The Overlooked Concessions

Easy wins tenants forget to ask for:

- **Moving allowance**: **$2–$10/sq ft** to cover relocation, cabling, and IT — separate from TI.
- **Free or reduced parking**: in dense markets a stall runs **$100–$400/month**; waiving even **20 stalls** is real annual money.
- **Signage rights**: building or monument signage at no extra cost — valuable for retail and brand visibility.
- **HVAC after-hours**: free or capped after-hours HVAC if your team works late.
- **Cure/self-help rights**: if the landlord fails to fund TI or make repairs, you can offset against rent.
- **Construction rent abatement**: free rent during the buildout period so you're not paying for space you can't occupy.

Ask for all of them. The marginal cost of adding line items to your RFP is zero, and landlords routinely concede the small ones to protect the face rate.

## How to Stack and Win Them

1. **Hire a tenant-rep broker** — landlord-paid, pulls comps, and knows which concessions are live in your market.
2. **Get a competing term sheet** so the landlord knows you can walk.
3. **Submit a written RFP listing every concession** with target numbers — anchor high across the whole stack.
4. **Tie the stack to your term commitment**: "We'll do 7 years for this package."
5. **Let the landlord choose levers** — they'll protect face rent and give on TI, escalations, and flexibility. Take it.
6. **Lock the mechanics in the lease**: draw schedules, caps, audit rights, defined termination fees.

## FAQ

**What's the single most valuable concession besides free rent?**
The **TI allowance** — **$20–$80/sq ft** of landlord-funded buildout. On a 10,000 sq ft space at $50/sq ft, that's **$500,000**, far more than a couple months of free rent.

**Why do landlords prefer giving concessions over cutting face rent?**
Face rent sets the comps that drive the building's valuation and the landlord's loan terms. Concessions like TI, free rent, and escalation caps lower your real cost without hurting the rent roll — so landlords give there first.

**How much can an escalation cap save me?**
Capping annual bumps at **3%** instead of **4%** on a $400,000/yr lease saves roughly **$90,000** over a 7-year term. Escalation caps compound, so they're worth fighting for.

**What flexibility concessions should I prioritize?**
An **early termination option**, **expansion/contraction rights**, and a **renewal option at a pre-set rate**. They cost the landlord little up front but protect you from being trapped if your space needs change.

**What concessions do tenants most often forget to ask for?**
**Moving allowance ($2–$10/sq ft)**, **free parking**, **construction-period rent abatement**, **CAM/opex caps with audit rights**, and **self-help cure rights**. Adding them to your RFP costs nothing and landlords often concede the smaller ones readily.

## Sources

- CBRE, "Occupier Services: The Full Concession Package Beyond Free Rent"
- JLL, "Lease Negotiation: TI, Escalations, and Flexibility Concession Benchmarks"
- Cushman & Wakefield, "Tenant Advisory: Building a Concession Stack"
- NAIOP, "Net Effective Rent and Concession Economics"
- BOMA International, "Operating Expense Pass-Through and CAM Methodology"
- IREM, "Income/Expense Analysis and Lease Concession Trends"
- The Tenant Advisor (tenant-rep brokerage), "Concessions to Negotiate Besides Free Rent"

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What Concessions Can I Ask for Besides Free Rent?

What Concessions Can I Ask for Besides Free Rent?

Direct Answer

The Full Concession Menu

The Money Concessions: TI, Escalations, and CAM

The Flexibility Concessions: Don't Get Trapped

The Overlooked Concessions

How to Stack and Win Them

FAQ

Sources

What does the score mean?