Months of zero base rent at the start of (or layered into) a lease term.

  • Months of zero base rent at the start of (or layered into) a lease term.
  • Rent-free is the most flexible concession — landlords prefer it to face-rent reductions because it preserves the headline rent and the implied valuation.

Rent-free period

Lease economics · Global

Short definition

Months of zero base rent at the start of (or layered into) a lease term.

Full definition

Rent-free is the most flexible concession — landlords prefer it to face-rent reductions because it preserves the headline rent and the implied valuation. Typical rent-free on a 10-year US Class A deal is 12-18 months; in London 18-24 months on a 10-year FRI; in Sydney 30+ months. Always model effective rent (face minus PV of concessions), not the headline.

Why this matters for Class A leasing

Rent-free period is part of the lease economics vocabulary that institutional Class A occupiers, landlords, and advisers use across Global markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks regional variation alongside the global standard so cross-border occupiers can translate quickly.

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