What is the average rent free period for commercial property?
The average rent free period for property
On average, a rent free period is usually between 1 to 3 months across the property sector, however, this depends on factors such as refurbishment costs, lease term and the rental figure itself.
Some rent free periods can be as long as a year and others can be just a couple of weeks. The range can vary dramatically across retail, industrial and office and tends to be negotiated on a case by case basis.
What is a rent free period?
A rent free period is a length of time in which a tenant does not pay rent towards a landlord. It is typically given as an incentive to prospective tenants and often times allows the tenant to move in and prepare their business without the worry of paying rent from day one.
Is a rent free period industry standard?
Roughly 1 in 5 leases actually offer some form of rent free period to ingoing tenants as an incentive, therefore a rent free period is not an industry standard.
There is perhaps a million questions one may have about rent free periods and what to request or accept, however due to the individuality of each case, it is best to get in touch with a firm of surveyors or commercial property agents.
Data sourced from this blog is in accordance with publications and data from Shepherd Commercial, JLL, Savills and other commercial surveying practices.