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[Music] these incentives and initial direct costs at least incentive is anything that encourages the lessee to sign the lease but also has a change in cash flow from the lessor directly to the lessee or from the lesser to a third party on behalf of the left seed the most common form of this within a real estate lease is a tenant improvement allowance however it can also be coming in the form of the lessor paying for the lessees moving expenses or even buying them up of their original contract what it does not include is a rent abatement or free rent period while that certainly encourages the last seat to sign release there is no exchange of cash flow between the lassor and the lessee therefore that would not be considered a lease incentive an initial direct tax are any incremental cost of the lease that would not have been incurred had the least not been executed a great example of this is a broker commission on an executed lease because that broker is not making a dime unless that l
