“Always call the property, obtain current asking rents and current concessions.” What are ‘concessions’?
 “Always call the property, obtain current asking rents and current concessions.”   What are ‘concessions’? Can anyone explain? 

Got a new job at a real estate firm and trying to minimize the questions for my coworkers so I bother them less and don't look as clueless as I probably am. Help greatly appreciated!
[{"id": "edro2jc", "text": "Things the landlord gives to make a deal. What kind of property type are you calling, for example some concessions in apartments are free months of rent.", "replies": [], "depth": 1}, {"id": "edrpwi2", "text": "Free rent period, triple net portion only (so the tenant doesnt pay rent, only occupation costs), tenant improvement allowance (generally money used to improve the interior decor or provide amenities), exclusive covenants (ie no one else can open a specific store type while you lease there). There are likely others.", "replies": [{"id": "eds8kb3", "text": "Thank you! Very awesome list!", "replies": [{"id": "eds9x9y", "text": "Some less obvious ones could be considered renewal options such as guaranteed lease rates, right of first refusal on adjacent bays (you get to decide if you take any adjacent space that becomes available adjacent to you at a predetermined rate, be careful with these...), favorable lease terms (aka if a tenant wants shorter terms than desired by the landlord), adjustments to common area cost calculations (again caution is advised), signage availability, external renovations to adjacent common space.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "edrxcta", "text": "These guys got it!  Property type does make a difference as previously stated.  Office might give free rent, money towards tenant improvements, etc..... I worked for LoopNet then CoStar for a decade .... knew nothing going in.  I\u2019d say I\u2019ve improved ....barely.  Don\u2019t be afraid to ask for help, even from the properties your calling .... the \u201cI\u2019m new\u201d only lasts so long take advantage .... \n\nA client had to explain cap rates to me 18 months in .... not fun lol ", "replies": [{"id": "eds9jit", "text": "That sounds incredibly embarrassing. Might make for a good laugh later though?", "replies": [{"id": "edsajae", "text": "Probably but I lost my pride years ago ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "edrxjak", "text": "Concessions represent discounts to rent. This word is generally reserved for multifamily apartment properties (and otherwise referred to as free rent in offices, etc.). When you underwrite concessions, be careful to identify whether the concessions are up-front or recurring. What\u2019s important about this distinction? Consider the two examples for a year-long lease for a $2,500 per month unit:\n\n1) Landlord offers tenant first four weeks free (one time concession)\n2) Landlord offers tenant $100 discount off asking rent each month (recurring concession)\n\nWhich is more punitive? We know the gross rent is $2,500. What is our net rent? The second option is easy to calculate, it is $2,400 per month.\n\nThe first option\u2019s net rent is $2,292. When you amortize (evenly spread) the month concession over the lease term, you arrive at $2,500 (value of the free month) divided by 12 months per year to arrive at a monthly concession equivalent of $208.\n\nYet psychologically, which concession is better for the landlord? In the recurring example, your tenant grows accustomed to paying a reduced $2,400 check. However, in the up front example, your tenant grows accustomed to paying a $2,500 check once the free month burns off. Perhaps your second tenant will be more willing to re-lease their unit at a higher rate.\nFurther, if you are looking to sell your building, your rent roll would look stronger with burned off up-front concessions.\n\nHopefully this helps. I read you are new to a CRE firm in your original post. If you\u2019re interested, I am running a promotion for one-on-one mentorship for new subscribers to my course, [Breaking Down REPE](https://www.leveragedbreakdowns.com/course/). Perhaps you\u2019ll find something helpful there, or in our free [newsletter](https://www.leveragedbreakdowns.com), [blog](https://www.leveragedbreakdowns.com/blog/), or YouTube content.", "replies": [], "depth": 1}, {"id": "edsqdoa", "text": "Do a Google search for \"Bruggeman real estate finance type:.PDF\" \n\nYou should find a text book that will help you with a lot of this stuff. It's no longer in print, if that makes you feel better for not paying for it.\n\nAn excerpt: \"Rents. As will be explained in the chapter, there are many ways to determine rents,\r\nranging from rents that are flat, stepped-up, indexed, and so forth. Concessions also\r\nmay be included that effectively lower rents. For example, the owner may provide a\r\nfree rent period during which no rent is paid. These concessions or discounts tend to be\r\nused (1) when vacancy rates are high because the market is oversupplied with rentable\r\nspace or (2) when demand for space is weak because of slow economic growth. In\r\naddition to free rent, other concessions may include a move-in allowance, buyouts of\r\nexisting leases, designated free parking, and the like.\"", "replies": [], "depth": 1}]