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In this episode of Real Estate Shorts, Alex Moore and Kate discuss the concept of free rent in commercial real estate. Free rent is a concession where a landlord forfeits or waives rent to attract tenants to occupy space in their building. This can be used to entice tenants with incentives like one month free rent. The tenant benefits from feeling like they are getting a deal and it helps with budgeting, while the owner uses this concession to attract and retain tenants. considerations around its impact on net operating income and valuation are also discussed.