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In this episode of Real Estate Shorts, Alex Moore and Kate discuss free rent in commercial real estate. Free rent is a concession where rent is forfeited or waived to entice tenants to occupy space. For example, offering one month free rent can attract tenants and help with budgeting. This concession impacts net operating income and valuation, benefiting both tenants and owners. Free rent is a strategy to fill vacancies and attract tenants to commercial spaces.