{"id":10919,"date":"2026-11-11T14:46:42","date_gmt":"2026-11-11T20:46:42","guid":{"rendered":"https:\/\/lrgrealty.com\/lrg-blog\/?p=10919"},"modified":"2026-11-13T15:47:44","modified_gmt":"2026-11-13T21:47:44","slug":"free-rent-vs-lower-base-rent-commercial-lease","status":"publish","type":"post","link":"https:\/\/lrgrealty.com\/lrg-blog\/free-rent-vs-lower-base-rent-commercial-lease\/","title":{"rendered":"Free Rent vs. Lower Base Rent in a Commercial Lease"},"content":{"rendered":"<div class=\"rl-page rl-lrg-v2 rl-commercial-suite cl-next-five cl-next-09\">\n<header class=\"cl-hero\">\n<div class=\"cl-inner\">\n<div class=\"cl-hero-grid\">\n<div class=\"cl-hero-copy\">\n<p class=\"cl-eyebrow\">LRG REALTY \/ COMMERCIAL LEASING \/ RENT CONCESSIONS &amp; OWNER RETURNS<\/p>\n<h1>Free Rent or <span class=\"cl-accent\">Lower Rent?<\/span><\/h1>\n<div class=\"rl-mh-slot\"><\/div>\n<p class=\"cl-intro\">Free rent concentrates savings in specific months; a lower base rent spreads the concession across the lease. Compare the actual payment calendar, which NNN and CAM charges continue, the cost of improvements, escalation language, and whether a concession can be recaptured on default.<\/p>\n<div class=\"cl-actions\"><a class=\"cl-btn cl-btn-red\" href=\"\/lrg-blog\/connect-with-lrg\/?intent=commercial\">Discuss a commercial lease with LRG<\/a><a class=\"cl-btn cl-btn-outline\" href=\"#key-takeaways\">Start with the takeaways<\/a><\/div>\n<\/div>\n<aside class=\"cl-hero-aside cl-new-hero-card\" aria-label=\"Commercial leasing decision briefing\">\n<p class=\"cl-new-hero-label\">THE DECISION BRIEF<\/p>\n<h2 id=\"landlords-what-matters\">Landlords \/ what matters<\/h2>\n<div class=\"cl-next-briefitem\"><small>Compare<\/small><strong>The same lease term<\/strong><\/div>\n<div class=\"cl-next-briefitem\"><small>Separate<\/small><strong>Base rent from pass-throughs<\/strong><\/div>\n<div class=\"cl-next-briefitem\"><small>Verify<\/small><strong>Recapture and escalation clauses<\/strong><\/div>\n<p class=\"cl-new-hero-foot\">Practical Texas guidance. Terms depend on the particular property and contract.<\/p>\n<\/aside>\n<\/div>\n<\/div>\n<\/header>\n<p><main class=\"cl-inner cl-main\"><\/p>\n<div class=\"cl-reading-layout\">\n<aside class=\"cl-toc-column\">\n<nav class=\"cl-jump cl-toc-desktop\" aria-label=\"On this page\"><strong>IN THIS GUIDE<\/strong><span class=\"cl-toc-descriptor\">Go to the decision you need<\/span><a href=\"#the-landlord-decision-reduce-todays-rent-or-protect-the-quoted-rate\">The landlord decision: Reduce today&#x27;s rent or protect the quoted rate?<\/a><a href=\"#what-does-a-free-rent-concession-actually-waive\">What does a free-rent concession actually waive?<\/a><a href=\"#why-a-lower-base-rental-rate-can-be-more-valuable-than-it-first-appears\">Why a lower base rental rate can be more valuable than it first appears<\/a><a href=\"#the-right-comparison-put-both-offers-on-the-same-calendar\">The right comparison: Put both offers on the same calendar<\/a><a href=\"#do-not-ignore-delivery-and-tenant-improvement-costs\">Do not ignore delivery and tenant-improvement costs<\/a><a href=\"#how-landlords-can-compare-the-cost-of-vacancy-with-a-concession\">How landlords can compare the cost of vacancy with a concession<\/a><a href=\"#watch-the-nnn-cam-and-tax-treatment-of-a-concession\">Watch the NNN, CAM and tax treatment of a concession<\/a><a href=\"#negotiate-the-concession-together-with-renewal-and-default-provisions\">Negotiate the concession together with renewal and default provisions<\/a><a href=\"#how-lrg-can-help-an-owner-assess-competing-proposals\">How LRG can help an owner assess competing proposals<\/a><a href=\"#frequently-asked-questions\">Frequently asked questions<\/a><a href=\"#primary-sources\">Primary sources<\/a><\/nav>\n<div class=\"cl-toc-foot\"><span class=\"cl-toc-mark\" aria-hidden=\"true\"><\/span><\/p>\n<p>Compare documents and lease terms before committing to the space.<\/p>\n<\/div>\n<\/aside>\n<div class=\"cl-reading-content\">\n<details class=\"cl-toc-mobile\">\n<summary>In this guide <span>Jump to a section<\/span><\/summary>\n<nav aria-label=\"Guide sections\"><a href=\"#the-landlord-decision-reduce-todays-rent-or-protect-the-quoted-rate\">The landlord decision: Reduce today&#x27;s rent or protect the quoted rate?<\/a><a href=\"#what-does-a-free-rent-concession-actually-waive\">What does a free-rent concession actually waive?<\/a><a href=\"#why-a-lower-base-rental-rate-can-be-more-valuable-than-it-first-appears\">Why a lower base rental rate can be more valuable than it first appears<\/a><a href=\"#the-right-comparison-put-both-offers-on-the-same-calendar\">The right comparison: Put both offers on the same calendar<\/a><a href=\"#do-not-ignore-delivery-and-tenant-improvement-costs\">Do not ignore delivery and tenant-improvement costs<\/a><a href=\"#how-landlords-can-compare-the-cost-of-vacancy-with-a-concession\">How landlords can compare the cost of vacancy with a concession<\/a><a href=\"#watch-the-nnn-cam-and-tax-treatment-of-a-concession\">Watch the NNN, CAM and tax treatment of a concession<\/a><a href=\"#negotiate-the-concession-together-with-renewal-and-default-provisions\">Negotiate the concession together with renewal and default provisions<\/a><a href=\"#how-lrg-can-help-an-owner-assess-competing-proposals\">How LRG can help an owner assess competing proposals<\/a><a href=\"#frequently-asked-questions\">Frequently asked questions<\/a><a href=\"#primary-sources\">Primary sources<\/a><\/nav>\n<\/details>\n<section class=\"cl-next-takeaways\" id=\"key-takeaways\">\n<div class=\"cl-next-take-head\"><span>THE SHORT VERSION<\/span><\/p>\n<h2 id=\"six-takeaways-before-you-decide\">Six takeaways <span class=\"cl-accent\">before you decide<\/span><\/h2>\n<\/div>\n<div class=\"cl-next-take-grid\">\n<div class=\"cl-next-take\"><span>01<\/span><\/p>\n<p>Compare the same lease term and payment schedule for every offer.<\/p>\n<\/div>\n<div class=\"cl-next-take\"><span>02<\/span><\/p>\n<p>Free base rent may still leave NNN, CAM and utility charges payable.<\/p>\n<\/div>\n<div class=\"cl-next-take\"><span>03<\/span><\/p>\n<p>Distinguish forgiven rent from deferred rent or default recapture.<\/p>\n<\/div>\n<div class=\"cl-next-take\"><span>04<\/span><\/p>\n<p>Check how escalations change the value of a reduced base rate.<\/p>\n<\/div>\n<div class=\"cl-next-take\"><span>05<\/span><\/p>\n<p>Do not substitute concessions for unresolved building or use problems.<\/p>\n<\/div>\n<div class=\"cl-next-take\"><span>06<\/span><\/p>\n<p>Use actual tenant and owner inputs, not invented San Antonio rent figures.<\/p>\n<\/div>\n<\/div>\n<\/section>\n<section class=\"cl-section\" id=\"the-landlord-decision-reduce-todays-rent-or-protect-the-quoted-rate\">\n<div class=\"cl-heading\"><span class=\"cl-kicker\">RENT CONCESSIONS &amp; OWNER RETURNS \/ DECISION GUIDE<\/span><\/p>\n<h2 id=\"the-landlord-decision-reduce-todays-rent-or-protect-the-quoted-rate\">The landlord decision: Reduce today&#x27;s rent or protect <span class=\"cl-accent\">the quoted rate?<\/span><\/h2>\n<\/div>\n<p class=\"cl-section-intro\">Landlords considering a concession often face two proposals. Neither approach is automatically more profitable.<\/p>\n<div class=\"cl-grid cl-grid-2\">\n<div class=\"cl-panel\">\n<h3>Free Rent Period<\/h3>\n<p>Offer a temporary period of free base rent at the start of the lease.<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>Lower Base Rent<\/h3>\n<p>Accept a lower base rent throughout the entire lease term.<\/p>\n<\/div>\n<\/div>\n<p The choice depends on when cash is received, which expenses the tenant continues to pay, how rent changes later, the probability of retaining the tenant and what the landlord gives up in exchange.<\/p>\n<p>The same question looks different to a tenant. A new business might value immediate cash-flow relief during construction and opening, while a stable business may prefer lower recurring expenses. Both sides need a written comparison over the same lease period, with operating-expense treatment and commencement conditions identified.<\/p>\n<div class=\"cl-note\">\n<p><strong>Quick answer:<\/strong> Compare the full cash-flow schedule, not the advertised concession. Free rent concentrates the benefit in particular months; a lower base rate spreads savings over the lease. An offer can be better for one party in nominal dollars but worse after timing, uncertainty, pass-through charges and tenant-credit considerations are included.<\/p>\n<\/div>\n<\/section>\n<section class=\"cl-section\" id=\"what-does-a-free-rent-concession-actually-waive\">\n<div class=\"cl-heading\"><span class=\"cl-kicker\">RENT CONCESSIONS &amp; OWNER RETURNS \/ DECISION GUIDE<\/span><\/p>\n<h2 id=\"what-does-a-free-rent-concession-actually-waive\">What does a free-rent <span class=\"cl-accent\">concession actually waive?<\/span><\/h2>\n<\/div>\n<p class=\"cl-section-intro\">In commercial leasing, &#8220;free rent&#8221; can describe an abatement of base rent only, a credit against defined rent charges or a negotiated period before base rent starts. The phrase does not necessarily waive property-tax reimbursements, building insurance, CAM, utilities, parking or other expenses. Landlords and tenants need to confirm the exact waiver in the letter of intent and lease.<\/p>\n<p>A lease may also distinguish between physical possession, construction access, substantial completion, business opening and rent commencement. Those events can occur at different times. The landlord may be granting a period of reduced charges while the tenant builds out the space, or a period intended to help the tenant stabilize after opening. The economic value differs.<\/p>\n<h3>The terms that must be written down<\/h3>\n<div class=\"cl-grid cl-grid-2\">\n<div class=\"cl-panel\">\n<h3>Waiver scope<\/h3>\n<p>Which categories of rent or reimbursement are waived.<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>Period dates<\/h3>\n<p>The precise commencement and expiration events for the abatement.<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>Forgiven or deferred<\/h3>\n<p>Whether waived amounts are forgiven or merely deferred.<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>Default recapture<\/h3>\n<p>Whether a default triggers repayment or recapture of a concession.<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>Escalation effect<\/h3>\n<p>How free rent interacts with annual base-rent increases.<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>Good standing<\/h3>\n<p>Whether the tenant must remain in good standing to receive the benefit.<\/p>\n<\/div>\n<\/div>\n<p>An undefined free-rent promise can produce a dispute at the first invoice. The <a href=\"\/lrg-blog\/letter-of-intent-commercial-lease-texas\/\">commercial LOI guide<\/a> offers a framework for putting economics into a term sheet before the complete lease is prepared.<\/p>\n<\/section>\n<section class=\"cl-section\" id=\"why-a-lower-base-rental-rate-can-be-more-valuable-than-it-first-appears\">\n<div class=\"cl-heading\"><span class=\"cl-kicker\">RENT CONCESSIONS &amp; OWNER RETURNS \/ DECISION GUIDE<\/span><\/p>\n<h2 id=\"why-a-lower-base-rental-rate-can-be-more-valuable-than-it-first-appears\">Why a lower base rental rate can be more valuable than <span class=\"cl-accent\">it first appears<\/span><\/h2>\n<\/div>\n<p class=\"cl-section-intro\">An ongoing base-rent reduction may affect every scheduled payment rather than only a defined opening window.<\/p>\n<div class=\"cl-grid cl-grid-2\">\n<div class=\"cl-panel\">\n<h3>Percentage Increases<\/h3>\n<p>If future increases are calculated as a percentage of the base rate, the initial reduction can also change later rent.<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>Fixed Increases<\/h3>\n<p>If increases use a fixed schedule or predetermined dollar amounts, the effect may differ.<\/p>\n<\/div>\n<\/div>\n<p>The landlord and tenant must compare the actual escalation method.<\/p>\n<p>Lower recurring rent can matter when the business expects steady operations rather than heavy opening expenses. It may also simplify cash-flow forecasting. For a landlord, however, a permanent base-rate reduction might affect future renewal discussions or how a prospective buyer evaluates the property&#8217;s income, depending on the transaction and underwriting method.<\/p>\n<div class=\"cl-note\">\n<p>The landlord should not assume an unverified market valuation multiple or capitalization rate. Compare cash flows first, then ask an experienced advisor how the negotiated economics may affect a particular property&#8217;s financing, reporting and future leasing strategy.<\/p>\n<\/div>\n<\/section>\n<section class=\"cl-section\" id=\"the-right-comparison-put-both-offers-on-the-same-calendar\">\n<div class=\"cl-heading\"><span class=\"cl-kicker\">RENT CONCESSIONS &amp; OWNER RETURNS \/ DECISION GUIDE<\/span><\/p>\n<h2 id=\"the-right-comparison-put-both-offers-on-the-same-calendar\">The right comparison: Put both offers on <span class=\"cl-accent\">the same calendar<\/span><\/h2>\n<\/div>\n<p class=\"cl-section-intro\">Use the actual proposed rent schedule, the same square footage basis, the same term and the same treatment of expenses. List each payment period and state which charges continue during an abatement. Include step-ups, fixed increases or other adjustments only when they appear in the proposed terms. If the lease includes variable pass-throughs, show them as unknown or separate estimated amounts rather than silently treating them as zero.<\/p>\n<div class=\"cl-pill-flow\"><span>Same Period<\/span><b>&rarr;<\/b><span>Same SF Basis<\/span><b>&rarr;<\/b><span>Same Term<\/span><b>&rarr;<\/b><span>Same Expenses<\/span><\/div>\n<div aria-label=\"Scrollable comparison table\" class=\"cl-scroll\" role=\"region\" tabindex=\"0\">\n<table class=\"cl-table\">\n<thead>\n<tr>\n<th>Comparison factor<\/th>\n<th>Free base-rent period<\/th>\n<th>Lower base rent throughout<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Near-term tenant cash outflow<\/td>\n<td>Potentially lower during specified months<\/td>\n<td>Reduced consistently, subject to other charges<\/td>\n<\/tr>\n<tr>\n<td>Later scheduled base rent<\/td>\n<td>Returns to stated rent schedule<\/td>\n<td>Remains at negotiated lower schedule<\/td>\n<\/tr>\n<tr>\n<td>Operating expense pass-throughs<\/td>\n<td>May still be due unless specifically waived<\/td>\n<td>Usually remain governed by the lease<\/td>\n<\/tr>\n<tr>\n<td>Landlord early cash flow<\/td>\n<td>Reduced during the concession<\/td>\n<td>Received throughout, at a lower amount<\/td>\n<\/tr>\n<tr>\n<td>Key contract question<\/td>\n<td>Is abated rent forgiven, deferred or recoverable?<\/td>\n<td>How do future escalations calculate?<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>This matrix is not a calculation of present value. A complete investment comparison would need the actual payment schedule and the landlord&#8217;s chosen discount rate, along with the known probability and cost of nonpayment. Do not apply a fictional San Antonio &#8220;standard&#8221; discount rate.<\/p>\n<h3>The questions behind each concession choice<\/h3>\n<div class=\"cl-scroll\" role=\"region\" tabindex=\"0\" aria-label=\"Scrollable comparison table\">\n<table class=\"cl-table\">\n<thead>\n<tr>\n<th scope=\"col\">Situation<\/th>\n<th scope=\"col\">Owner\u2019s next comparison<\/th>\n<th scope=\"col\">Tenant\u2019s next comparison<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Opening-period cash shortage<\/td>\n<td>Could targeted abatement address timing without altering the entire schedule?<\/td>\n<td>Which additional rent and operating bills still arrive while base rent is waived?<\/td>\n<\/tr>\n<tr>\n<td>Monthly expenses must stay predictable<\/td>\n<td>Can the proposed base rate remain sustainable for the full agreed term?<\/td>\n<td>Does the reduced rate still increase at specified dates?<\/td>\n<\/tr>\n<tr>\n<td>Significant work remains<\/td>\n<td>Does the concession start on possession or at an agreed construction milestone?<\/td>\n<td>Is the city approval and opening schedule realistic?<\/td>\n<\/tr>\n<tr>\n<td>Tenant-credit or early exit concern<\/td>\n<td>What do guarantees and concession-recapture terms actually say?<\/td>\n<td>What cost appears if the lease terminates before its scheduled end?<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div class=\"cl-next-tool\" data-cl-tool=\"concession\">\n<div class=\"cl-next-toolhead\"><span>COMMERCIAL CONCESSION COMPARISON<\/span><\/p>\n<h3>Free base rent or a lower base rate?<\/h3>\n<p>Compare nominal base rent only, using your proposed figures. This simple model assumes a level rate with no escalations, discounting or expense pass-throughs.<\/p>\n<\/div>\n<div class=\"cl-next-fields\"><label>Rentable area (square feet)<input type=\"number\" min=\"0\" step=\"1\" data-field=\"sf\" placeholder=\"Enter space size\"><\/label><label>Quoted annual base rent (dollars per SF)<input type=\"number\" min=\"0\" step=\"0.01\" data-field=\"rate\" placeholder=\"Enter quoted rate\"><\/label><label>Lease term (months)<input type=\"number\" min=\"1\" step=\"1\" data-field=\"months\" placeholder=\"Enter full term\"><\/label><label>Free base-rent months<input type=\"number\" min=\"0\" step=\"1\" data-field=\"free\" placeholder=\"Enter abated months\"><\/label><label>Reduced annual base rate (dollars per SF)<input type=\"number\" min=\"0\" step=\"0.01\" data-field=\"lower\" placeholder=\"Enter alternative rate\"><\/label><\/div>\n<div class=\"cl-next-results cl-next-results-3\">\n<div><small>Base rent with free months<\/small><strong data-result=\"free_total\">Enter figures<\/strong><\/div>\n<div><small>Base rent at reduced rate<\/small><strong data-result=\"lower_total\">Enter figures<\/strong><\/div>\n<div><small>Nominal difference<\/small><strong data-result=\"difference\">Enter figures<\/strong><\/div>\n<\/div>\n<p class=\"cl-next-footnote\" data-result=\"interpretation\" role=\"status\">This is not net present value or a landlord return estimate. It excludes TI, property taxes, insurance, CAM, utilities, financing, default, escalation and lease incentives outside base rent.<\/p>\n<\/div>\n<\/section>\n<div class=\"cl-inline-cta\">\n<p>Have a property-specific leasing question? LRG can help identify the documents and terms to compare before negotiating.<\/p>\n<p><a class=\"cl-btn cl-btn-red\" href=\"\/lrg-blog\/connect-with-lrg\/?intent=commercial\">Ask LRG about this decision<\/a><\/div>\n<section class=\"cl-section\" id=\"do-not-ignore-delivery-and-tenant-improvement-costs\">\n<div class=\"cl-heading\"><span class=\"cl-kicker\">RENT CONCESSIONS &amp; OWNER RETURNS \/ DECISION GUIDE<\/span><\/p>\n<h2 id=\"do-not-ignore-delivery-and-tenant-improvement-costs\">Do not ignore delivery and <span class=\"cl-accent\">tenant-improvement costs<\/span><\/h2>\n<\/div>\n<p class=\"cl-section-intro\">Free rent and TI allowances are not interchangeable.<\/p>\n<div class=\"cl-grid cl-grid-3\">\n<div class=\"cl-panel\">\n<h3>Free Rent<\/h3>\n<p>Reduces occupancy expenses while a tenant pays architects and contractors.<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>TI Allowance<\/h3>\n<p>May reimburse some eligible construction costs but does not directly pay rent.<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>Cash Gap Risk<\/h3>\n<p>A tenant can receive both concessions and still have cash shortages if reimbursements are delayed or costs exceed the approved scope.<\/p>\n<\/div>\n<\/div>\n<p<\/p>\n<p>Before granting free rent to accommodate a build-out, confirm who controls permits and construction, how the space will be delivered, and what occurs if work is delayed. A fixed free-rent period may expire before the tenant is legally ready to operate. That can create an incentive dispute between landlord and tenant rather than solve the original timing problem.<\/p>\n<p>San Antonio&#8217;s <a href=\"https:\/\/www.sa.gov\/Directory\/Departments\/DSD\/Constructing\/Business-Commercial\/Certificate-of-Occupancy\" rel=\"noopener noreferrer\" target=\"_blank\">certificate-of-occupancy guidance<\/a> explains that changed business uses may require a new certificate and inspections. No lease concession can guarantee city approval. The companion <a href=\"\/lrg-blog\/tenant-improvement-allowances-texas\/\">tenant-improvement guide<\/a> addresses work letters, construction responsibility and reimbursement.<\/p>\n<\/section>\n<section class=\"cl-section\" id=\"how-landlords-can-compare-the-cost-of-vacancy-with-a-concession\">\n<div class=\"cl-heading\"><span class=\"cl-kicker\">RENT CONCESSIONS &amp; OWNER RETURNS \/ DECISION GUIDE<\/span><\/p>\n<h2 id=\"how-landlords-can-compare-the-cost-of-vacancy-with-a-concession\">How landlords can compare the cost of vacancy <span class=\"cl-accent\">with a concession<\/span><\/h2>\n<\/div>\n<p class=\"cl-section-intro\">An owner may be tempted to hold out for the highest headline rent while carrying an empty suite. But the relevant comparison is between realistic alternatives over the expected holding and lease periods. A delayed lease may mean more carrying expenses, management work, utility obligations, repair exposure and uncollected rent while the space remains vacant.<\/p>\n<p>That does not make a concession the right decision in every case. The tenant&#8217;s operating plan, creditworthiness, required improvements and expected occupancy all affect whether accepting a proposal is prudent. A landlord might reasonably reject a seemingly strong offer if the build-out is disproportionate, the permitted use is uncertain or the lease provisions create unacceptable risk.<\/p>\n<h3>Questions for the owner before proposing a concession<\/h3>\n<div class=\"cl-grid cl-grid-3\">\n<div class=\"cl-panel\">\n<h3>Root objection<\/h3>\n<p>Is the principal objection the total payment, an opening-period cash shortage, or uncertainty about operating expenses?<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>Solve or mask<\/h3>\n<p>Would a concession solve that objection, or is the property still functionally unsuitable?<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>Remaining work<\/h3>\n<p>How much work or delay would remain after the concession is accepted?<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>Sustainability<\/h3>\n<p>Can the tenant support its obligations after any introductory relief expires?<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>Future impact<\/h3>\n<p>How would the terms affect the landlord&#8217;s next leasing decision or sale plans?<\/p>\n<\/div>\n<\/div>\n<p>The <a href=\"\/lrg-blog\/why-commercial-property-isnt-leasing\/\">commercial vacancy diagnosis guide<\/a> addresses other causes of stalled listings. Concessions should solve an identified obstacle rather than mask a building or permitted-use problem.<\/p>\n<\/section>\n<section class=\"cl-section\" id=\"watch-the-nnn-cam-and-tax-treatment-of-a-concession\">\n<div class=\"cl-heading\"><span class=\"cl-kicker\">RENT CONCESSIONS &amp; OWNER RETURNS \/ DECISION GUIDE<\/span><\/p>\n<h2 id=\"watch-the-nnn-cam-and-tax-treatment-of-a-concession\">Watch the NNN, CAM and tax treatment of a <span class=\"cl-accent\">concession<\/span><\/h2>\n<\/div>\n<p class=\"cl-section-intro\">\n<div class=\"cl-grid cl-grid-3\">\n<div class=\"cl-panel\">\n<h3>Taxes<\/h3>\n<p>Property tax obligations typically continue during a free base-rent period under an NNN lease.<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>Insurance<\/h3>\n<p>Building insurance payments may remain the tenant&#8217;s responsibility even when base rent is waived.<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>CAM<\/h3>\n<p>Common area maintenance charges may still be invoiced during the abatement window.<\/p>\n<\/div>\n<\/div>\n<p>If invoices for those expenses continue, the tenant has not received a zero-cost occupancy period. Likewise, a full-service rent quote may contain its own expense-stop or escalation language, so a concession should state how those obligations are treated.<\/p>\n<p>Landlords should supply clear, dated estimates and identify any reconciliation process. Tenants should ask whether their proportionate share of expenses changes while other spaces are vacant and whether the lease includes gross-up provisions. These are contract questions, not facts that can be inferred from an advertisement. The <a href=\"\/lrg-blog\/cam-charges-commercial-lease-texas\/\">CAM charges guide<\/a> and <a href=\"\/lrg-blog\/nnn-vs-modified-gross-vs-full-service-lease\/\">NNN versus gross guide<\/a> give deeper explanations.<\/p>\n<div class=\"cl-note\">\n<p><strong>Tax and accounting.<\/strong> Tax and accounting treatment can differ depending on the lease, the reporting entity and the particular transaction. This guide does not assume that a concession has a specific tax effect or that a business can recognize a rent benefit immediately. Landlords and tenants should consult their accountants before making accounting or tax representations.<\/p>\n<\/div>\n<\/section>\n<section class=\"cl-section\" id=\"negotiate-the-concession-together-with-renewal-and-default-provisions\">\n<div class=\"cl-heading\"><span class=\"cl-kicker\">RENT CONCESSIONS &amp; OWNER RETURNS \/ DECISION GUIDE<\/span><\/p>\n<h2 id=\"negotiate-the-concession-together-with-renewal-and-default-provisions\">Negotiate the concession together with renewal and <span class=\"cl-accent\">default provisions<\/span><\/h2>\n<\/div>\n<p class=\"cl-section-intro\">A concession is part of the entire risk allocation. A landlord may condition free rent on timely payment or continued occupancy. A tenant may ask for protections against broad recapture language that turns a forgiven concession into a large unexpected liability after an unrelated default. The parties should examine these clauses alongside guarantees, remedies, permitted use and early termination provisions.<\/p>\n<p>Renewal language matters as well. If an option says future rent is a percentage increase over the last scheduled rate, the difference between a temporary abatement and an ongoing discount could remain important after the initial term. If renewal rent is determined by an independent process, the result may differ. Read the actual clause rather than expecting one answer across all Texas leases.<\/p>\n<h3>Practical contract questions<\/h3>\n<div class=\"cl-grid cl-grid-2\">\n<div class=\"cl-panel\">\n<h3>Forgiven or repaid<\/h3>\n<p>Are free-rent payments forgiven or deferred and later repaid?<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>Default trigger<\/h3>\n<p>Can a minor default trigger full concession repayment?<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>Expense exclusions<\/h3>\n<p>Are additional rent and utility charges excluded from relief?<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>Start date<\/h3>\n<p>Is the start date tied to possession, completion or an agreed milestone?<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>Assignability<\/h3>\n<p>Can the concession be assigned if the business is sold?<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>Landlord failure<\/h3>\n<p>What happens if the landlord fails to deliver agreed work?<\/p>\n<\/div>\n<div class=\"cl-panel\">\n<h3>Renewal base<\/h3>\n<p>Does the renewal option refer to face rent, effective rent or another calculation?<\/p>\n<\/div>\n<\/div>\n<p>An attorney can translate the negotiated business concept into enforceable language. Texas commercial tenancies are subject to <a href=\"https:\/\/statutes.capitol.texas.gov\/Docs\/PR\/htm\/PR.93.htm\" rel=\"noopener noreferrer\" target=\"_blank\">Property Code Chapter 93<\/a>, but that chapter does not establish a uniform free-rent contract for all properties.<\/p>\n<\/section>\n<section class=\"cl-section\" id=\"how-lrg-can-help-an-owner-assess-competing-proposals\">\n<div class=\"cl-heading\"><span class=\"cl-kicker\">RENT CONCESSIONS &amp; OWNER RETURNS \/ DECISION GUIDE<\/span><\/p>\n<h2 id=\"how-lrg-can-help-an-owner-assess-competing-proposals\">How LRG can help an owner <span class=\"cl-accent\">assess competing proposals<\/span><\/h2>\n<\/div>\n<p class=\"cl-section-intro\">An owner benefits from comparing written proposals across consistent assumptions.<\/p>\n<div class=\"cl-checks cl-cols-2\">\n<div class=\"cl-check\"><span><\/span><\/p>\n<p>Same period and expense assumptions<\/p>\n<\/div>\n<div class=\"cl-check\"><span><\/span><\/p>\n<p>Intended condition of the space<\/p>\n<\/div>\n<div class=\"cl-check\"><span><\/span><\/p>\n<p>Who pays for improvements<\/p>\n<\/div>\n<div class=\"cl-check\"><span><\/span><\/p>\n<p>What the tenant requires before opening<\/p>\n<\/div>\n<div class=\"cl-check\"><span><\/span><\/p>\n<p>Which ongoing protections the landlord gives up<\/p>\n<\/div>\n<\/div>\n<p A proposal that looks weaker on face rent may still produce a more workable long-term tenancy, but only when the full terms support that conclusion.<\/p>\n<p>For tenants, a similar comparison highlights whether the introductory concession is sufficient to address the business&#8217;s launch needs. For landlords, it clarifies the tradeoff between vacancy, near-term collections, continuing rent and transaction risk. Both sides should receive a transparent explanation of brokerage representation and compensation before engaging an agent. See LRG&#8217;s <a href=\"\/lrg-blog\/who-pays-commercial-real-estate-broker-texas\/\">commercial brokerage compensation guide<\/a>.<\/p>\n<\/section>\n<section class=\"cl-section cl-next-faq\" id=\"frequently-asked-questions\">\n<div class=\"cl-heading\"><span class=\"cl-kicker\">DIRECT ANSWERS \/ FREQUENT QUESTIONS<\/span><\/p>\n<h2 id=\"common-questions-about-free-rent-or-lower-rent\">Common questions about free rent or <span class=\"cl-accent\">lower rent<\/span><\/h2>\n<\/div>\n<div class=\"cl-faqs\">\n<details>\n<summary>Is free rent better than a lower commercial lease rate?<\/summary>\n<p>Neither is universally better. Free rent can help near-term cash flow while a lower rate reduces ongoing charges. Compare the exact base-rent schedule and separate costs, then consider timing and the actual lease risks.<\/p>\n<\/details>\n<details>\n<summary>Does free rent include NNN charges?<\/summary>\n<p>Not unless the agreement says so. A base-rent abatement can leave property taxes, insurance, CAM, utilities and other additional rent payable.<\/p>\n<\/details>\n<details>\n<summary>What is the difference between free rent and deferred rent?<\/summary>\n<p>Free or abated rent may be forgiven, while deferred rent remains payable later. The contract should say whether the amount can be recaptured after a default or early termination.<\/p>\n<\/details>\n<details>\n<summary>How do landlords calculate the cost of free months?<\/summary>\n<p>For a simple level-rate proposal, multiply the monthly base rent by the number of abated months. Adjust the result if rent escalates or if the waiver applies to other charges.<\/p>\n<\/details>\n<details>\n<summary>What is an effective commercial rent?<\/summary>\n<p>Effective rent is a comparison concept reflecting concessions over a specified period. Its meaning depends on whether the calculation includes base rent only, operating expenses, timing or a discount rate.<\/p>\n<\/details>\n<details>\n<summary>Can a free-rent period start during build-out?<\/summary>\n<p>Yes, depending on the lease. The parties should distinguish physical possession, construction access, opening, rent commencement and the start of any abatement.<\/p>\n<\/details>\n<details>\n<summary>Why might a landlord prefer free rent instead of reducing face rent?<\/summary>\n<p>A landlord may prefer to preserve the scheduled base rate after a defined introductory period, although the effect on valuation, financing or renewals depends on the specific property and lease.<\/p>\n<\/details>\n<details>\n<summary>Can landlords recapture a rent concession after a default?<\/summary>\n<p>Some contracts include recapture provisions. Whether a specific provision is enforceable or commercially sensible is a question for Texas lease counsel and the negotiated terms.<\/p>\n<\/details>\n<details>\n<summary>How should tenants compare offers with rent increases?<\/summary>\n<p>Build a payment schedule using each proposed escalation date and amount. A simple calculator that assumes level rent will not capture step-ups or other changes.<\/p>\n<\/details>\n<details>\n<summary>Should landlords grant concessions to solve a vacancy?<\/summary>\n<p>Only after identifying the obstacle a concession is intended to address. A discount will not fix incompatible zoning, missing permits or serious building-delivery issues.<\/p>\n<\/details>\n<\/div>\n<\/section>\n<div class=\"cl-related\">\n<div class=\"cl-related-head\">\n<h2 id=\"continue-your-commercial-leasing-research\">Continue your commercial leasing research<\/h2>\n<p><a href=\"\/lrg-blog\/commercial\/\">All commercial guides<\/a><\/div>\n<div class=\"cl-related-grid\"><a href=\"\/lrg-blog\/why-commercial-property-isnt-leasing\/\"><span>Commercial Property Not Leasing?<\/span><strong>Five Problems Beyond Marketing<\/strong><i aria-hidden=\"true\">\u203a<\/i><\/a><a href=\"\/lrg-blog\/tenant-improvement-allowances-texas\/\"><span>Tenant Improvement Allowances<\/span><strong>Who Pays, Who Builds, Who Owns?<\/strong><i aria-hidden=\"true\">\u203a<\/i><\/a><a href=\"\/lrg-blog\/commercial-lease-relocation-redevelopment-clauses\/\"><span>Relocation &amp; Redevelopment Clauses<\/span><strong>Protect Your Operations Before Signing<\/strong><i aria-hidden=\"true\">\u203a<\/i><\/a><\/div>\n<\/div>\n<section class=\"cl-section cl-sources\" id=\"primary-sources\">\n<div class=\"cl-heading\"><span class=\"cl-kicker\">RESEARCH \/ PRIMARY SOURCES<\/span><\/p>\n<h2 id=\"official-sources-and-scope\">Official sources and scope<\/h2>\n<\/div>\n<p>Checked for this 2026 edition. These establish the relevant Texas legal and permit framework; no market rent or construction pricing has been inferred. Documents and city decisions for an individual property control.<\/p>\n<ol>\n<li><a href=\"https:\/\/www.sa.gov\/Directory\/Departments\/DSD\/Constructing\/Business-Commercial\/Certificate-of-Occupancy\" rel=\"noopener noreferrer\" target=\"_blank\">City of San Antonio, Certificate of Occupancy<\/a><\/li>\n<li><a href=\"https:\/\/statutes.capitol.texas.gov\/Docs\/PR\/htm\/PR.93.htm\" rel=\"noopener noreferrer\" target=\"_blank\">Texas Legislature, Texas Property Code Chapter 93<\/a><\/li>\n<\/ol>\n<div class=\"cl-legal\"><strong>Important:<\/strong> Educational material only, not legal, tax, architectural or engineering advice. Lease enforceability and governmental approvals depend on the facts and current rules. Consult qualified local professionals as appropriate.<\/div>\n<\/section>\n<div class=\"cl-bottom-cta\"><span class=\"cl-kicker\">LOCAL COMMERCIAL LEASING \/ SAN ANTONIO &amp; TEXAS<\/span><\/p>\n<h2 id=\"make-the-next-lease-decision-with-better-information\">Make the next lease decision with better information.<\/h2>\n<p>LRG Realty can help tenants and property owners compare options, identify open questions and coordinate a practical commercial leasing strategy.<\/p>\n<div class=\"cl-actions\"><a class=\"cl-btn cl-btn-red\" href=\"\/lrg-blog\/connect-with-lrg\/?intent=commercial\">Connect with LRG Realty<\/a><a class=\"cl-btn cl-btn-outline\" href=\"\/lrg-blog\/commercial\/\">Browse commercial guides<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><\/main><\/div>\n","protected":false},"excerpt":{"rendered":"<p>LRG REALTY \/ COMMERCIAL LEASING \/ RENT CONCESSIONS &amp; OWNER RETURNS Free Rent or Lower Rent? Free rent concentrates savings in specific months; a lower base rent spreads the concession across the lease. Compare the actual payment calendar, which NNN and CAM charges continue, the cost of improvements, escalation language, and whether a concession can [&hellip;]<\/p>\n","protected":false},"author":47,"featured_media":10924,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[81],"tags":[],"class_list":["post-10919","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-leasing"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Free Rent vs. Lower Base Rent in a Commercial Lease<\/title>\n<meta name=\"description\" content=\"A Texas landlord guide to comparing free rent with a lower base rate, including a lease-concession calculator.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lrgrealty.com\/lrg-blog\/free-rent-vs-lower-base-rent-commercial-lease\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Free Rent vs. Lower Base Rent in a Commercial Lease\" \/>\n<meta property=\"og:description\" content=\"A Texas landlord guide to comparing free rent with a lower base rate, including a lease-concession calculator.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/lrgrealty.com\/lrg-blog\/free-rent-vs-lower-base-rent-commercial-lease\/\" \/>\n<meta property=\"og:site_name\" content=\"LRG Realty Blog\" \/>\n<meta property=\"article:published_time\" content=\"2026-11-11T20:46:42+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-11-13T21:47:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/lrgrealty.com\/wp-content\/uploads\/2026\/11\/attach-15190.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1536\" \/>\n\t<meta property=\"og:image:height\" content=\"1024\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"LRG Realty\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"LRG Realty\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/free-rent-vs-lower-base-rent-commercial-lease\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/free-rent-vs-lower-base-rent-commercial-lease\\\/\"},\"author\":{\"name\":\"LRG Realty\",\"@id\":\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/#\\\/schema\\\/person\\\/f4b3e6f5ec757025c4a2254d987cc18b\"},\"headline\":\"Free Rent vs. Lower Base Rent in a Commercial Lease\",\"datePublished\":\"2026-11-11T20:46:42+00:00\",\"dateModified\":\"2026-11-13T21:47:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/free-rent-vs-lower-base-rent-commercial-lease\\\/\"},\"wordCount\":462,\"image\":{\"@id\":\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/free-rent-vs-lower-base-rent-commercial-lease\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/lrgrealty.com\\\/wp-content\\\/uploads\\\/2026\\\/11\\\/attach-15190.jpg\",\"articleSection\":[\"Commercial Leasing\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/free-rent-vs-lower-base-rent-commercial-lease\\\/\",\"url\":\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/free-rent-vs-lower-base-rent-commercial-lease\\\/\",\"name\":\"Free Rent vs. Lower Base Rent in a Commercial Lease\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/free-rent-vs-lower-base-rent-commercial-lease\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/free-rent-vs-lower-base-rent-commercial-lease\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/lrgrealty.com\\\/wp-content\\\/uploads\\\/2026\\\/11\\\/attach-15190.jpg\",\"datePublished\":\"2026-11-11T20:46:42+00:00\",\"dateModified\":\"2026-11-13T21:47:44+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/#\\\/schema\\\/person\\\/f4b3e6f5ec757025c4a2254d987cc18b\"},\"description\":\"A Texas landlord guide to comparing free rent with a lower base rate, including a lease-concession calculator.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/free-rent-vs-lower-base-rent-commercial-lease\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/free-rent-vs-lower-base-rent-commercial-lease\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/free-rent-vs-lower-base-rent-commercial-lease\\\/#primaryimage\",\"url\":\"https:\\\/\\\/lrgrealty.com\\\/wp-content\\\/uploads\\\/2026\\\/11\\\/attach-15190.jpg\",\"contentUrl\":\"https:\\\/\\\/lrgrealty.com\\\/wp-content\\\/uploads\\\/2026\\\/11\\\/attach-15190.jpg\",\"width\":1536,\"height\":1024},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/free-rent-vs-lower-base-rent-commercial-lease\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Free Rent vs. Lower Base Rent in a Commercial Lease\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/#website\",\"url\":\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/\",\"name\":\"LRG Realty Blog\",\"description\":\"LRG Realty Blog\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/#\\\/schema\\\/person\\\/f4b3e6f5ec757025c4a2254d987cc18b\",\"name\":\"LRG Realty\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/a33b3d0fbc42e6c9619499a4e38e8019098dbae03a274f30f572db5fe9a02e9d?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/a33b3d0fbc42e6c9619499a4e38e8019098dbae03a274f30f572db5fe9a02e9d?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/a33b3d0fbc42e6c9619499a4e38e8019098dbae03a274f30f572db5fe9a02e9d?s=96&d=mm&r=g\",\"caption\":\"LRG Realty\"},\"url\":\"https:\\\/\\\/lrgrealty.com\\\/lrg-blog\\\/author\\\/lrg-realty\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Free Rent vs. Lower Base Rent in a Commercial Lease","description":"A Texas landlord guide to comparing free rent with a lower base rate, including a lease-concession calculator.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/lrgrealty.com\/lrg-blog\/free-rent-vs-lower-base-rent-commercial-lease\/","og_locale":"en_US","og_type":"article","og_title":"Free Rent vs. Lower Base Rent in a Commercial Lease","og_description":"A Texas landlord guide to comparing free rent with a lower base rate, including a lease-concession calculator.","og_url":"https:\/\/lrgrealty.com\/lrg-blog\/free-rent-vs-lower-base-rent-commercial-lease\/","og_site_name":"LRG Realty Blog","article_published_time":"2026-11-11T20:46:42+00:00","article_modified_time":"2026-11-13T21:47:44+00:00","og_image":[{"width":1536,"height":1024,"url":"https:\/\/lrgrealty.com\/wp-content\/uploads\/2026\/11\/attach-15190.jpg","type":"image\/jpeg"}],"author":"LRG Realty","twitter_card":"summary_large_image","twitter_misc":{"Written by":"LRG Realty","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/lrgrealty.com\/lrg-blog\/free-rent-vs-lower-base-rent-commercial-lease\/#article","isPartOf":{"@id":"https:\/\/lrgrealty.com\/lrg-blog\/free-rent-vs-lower-base-rent-commercial-lease\/"},"author":{"name":"LRG Realty","@id":"https:\/\/lrgrealty.com\/lrg-blog\/#\/schema\/person\/f4b3e6f5ec757025c4a2254d987cc18b"},"headline":"Free Rent vs. Lower Base Rent in a Commercial Lease","datePublished":"2026-11-11T20:46:42+00:00","dateModified":"2026-11-13T21:47:44+00:00","mainEntityOfPage":{"@id":"https:\/\/lrgrealty.com\/lrg-blog\/free-rent-vs-lower-base-rent-commercial-lease\/"},"wordCount":462,"image":{"@id":"https:\/\/lrgrealty.com\/lrg-blog\/free-rent-vs-lower-base-rent-commercial-lease\/#primaryimage"},"thumbnailUrl":"https:\/\/lrgrealty.com\/wp-content\/uploads\/2026\/11\/attach-15190.jpg","articleSection":["Commercial Leasing"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/lrgrealty.com\/lrg-blog\/free-rent-vs-lower-base-rent-commercial-lease\/","url":"https:\/\/lrgrealty.com\/lrg-blog\/free-rent-vs-lower-base-rent-commercial-lease\/","name":"Free Rent vs. Lower Base Rent in a Commercial Lease","isPartOf":{"@id":"https:\/\/lrgrealty.com\/lrg-blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/lrgrealty.com\/lrg-blog\/free-rent-vs-lower-base-rent-commercial-lease\/#primaryimage"},"image":{"@id":"https:\/\/lrgrealty.com\/lrg-blog\/free-rent-vs-lower-base-rent-commercial-lease\/#primaryimage"},"thumbnailUrl":"https:\/\/lrgrealty.com\/wp-content\/uploads\/2026\/11\/attach-15190.jpg","datePublished":"2026-11-11T20:46:42+00:00","dateModified":"2026-11-13T21:47:44+00:00","author":{"@id":"https:\/\/lrgrealty.com\/lrg-blog\/#\/schema\/person\/f4b3e6f5ec757025c4a2254d987cc18b"},"description":"A Texas landlord guide to comparing free rent with a lower base rate, including a lease-concession calculator.","breadcrumb":{"@id":"https:\/\/lrgrealty.com\/lrg-blog\/free-rent-vs-lower-base-rent-commercial-lease\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/lrgrealty.com\/lrg-blog\/free-rent-vs-lower-base-rent-commercial-lease\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/lrgrealty.com\/lrg-blog\/free-rent-vs-lower-base-rent-commercial-lease\/#primaryimage","url":"https:\/\/lrgrealty.com\/wp-content\/uploads\/2026\/11\/attach-15190.jpg","contentUrl":"https:\/\/lrgrealty.com\/wp-content\/uploads\/2026\/11\/attach-15190.jpg","width":1536,"height":1024},{"@type":"BreadcrumbList","@id":"https:\/\/lrgrealty.com\/lrg-blog\/free-rent-vs-lower-base-rent-commercial-lease\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/lrgrealty.com\/lrg-blog\/"},{"@type":"ListItem","position":2,"name":"Free Rent vs. Lower Base Rent in a Commercial Lease"}]},{"@type":"WebSite","@id":"https:\/\/lrgrealty.com\/lrg-blog\/#website","url":"https:\/\/lrgrealty.com\/lrg-blog\/","name":"LRG Realty Blog","description":"LRG Realty Blog","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/lrgrealty.com\/lrg-blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/lrgrealty.com\/lrg-blog\/#\/schema\/person\/f4b3e6f5ec757025c4a2254d987cc18b","name":"LRG Realty","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/a33b3d0fbc42e6c9619499a4e38e8019098dbae03a274f30f572db5fe9a02e9d?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/a33b3d0fbc42e6c9619499a4e38e8019098dbae03a274f30f572db5fe9a02e9d?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/a33b3d0fbc42e6c9619499a4e38e8019098dbae03a274f30f572db5fe9a02e9d?s=96&d=mm&r=g","caption":"LRG Realty"},"url":"https:\/\/lrgrealty.com\/lrg-blog\/author\/lrg-realty\/"}]}},"_links":{"self":[{"href":"https:\/\/lrgrealty.com\/lrg-blog\/wp-json\/wp\/v2\/posts\/10919","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lrgrealty.com\/lrg-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lrgrealty.com\/lrg-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lrgrealty.com\/lrg-blog\/wp-json\/wp\/v2\/users\/47"}],"replies":[{"embeddable":true,"href":"https:\/\/lrgrealty.com\/lrg-blog\/wp-json\/wp\/v2\/comments?post=10919"}],"version-history":[{"count":3,"href":"https:\/\/lrgrealty.com\/lrg-blog\/wp-json\/wp\/v2\/posts\/10919\/revisions"}],"predecessor-version":[{"id":10969,"href":"https:\/\/lrgrealty.com\/lrg-blog\/wp-json\/wp\/v2\/posts\/10919\/revisions\/10969"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lrgrealty.com\/lrg-blog\/wp-json\/wp\/v2\/media\/10924"}],"wp:attachment":[{"href":"https:\/\/lrgrealty.com\/lrg-blog\/wp-json\/wp\/v2\/media?parent=10919"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lrgrealty.com\/lrg-blog\/wp-json\/wp\/v2\/categories?post=10919"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lrgrealty.com\/lrg-blog\/wp-json\/wp\/v2\/tags?post=10919"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}