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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 offered to tenants by forfeiting or waiving an amount of rent as an incentive to occupy space in the owner's building. This can help attract tenants and provide financial benefits such as budgeting and cost savings for both parties. Owners use this concession strategically to entice tenants and potentially impact net operating income and property valuation.
