Free Rent

An incentive for a tenant to sign a lease, "free rent" is a period of time, most commonly expressed in months, during which a tenant does not have to pay rent, but gets full access and use of their space.

Free rent can be "inside" or "outside" of a lease - CashFlow assumes that all free rent takes place inside of the lease term. For example, a three year (i.e. thirty-six month) lease that includes three months of free rent inside of the lease term is a lease that only calls for thirty-three months worth of lease payments. Conversely, if the same lease specified that the free rent were "outside" of the lease term, then the lease would still include thirty-six months worth of rent payments - but the space would actually be leased for thirty-nine months.

Free rent outside of a lease term can be represented in CashFlow by pushing back a leases's start date.

Free Rent in CashFlow:

Step 1:

Click Rent Roll in the left navigation bar.
Click on an existing entry from the list.
Click the Leasing Costs tab, then enter a value in the Free Rent field.

Step 2:

Click Market Leasing in the left navigation bar.
In the Market Leasing Assumptions section, click an existing entry.
In the Market vs Renewal section:  Enter a value in the Market Free Rent field Enter a value in the Renewal Free Rent field