Even when rental properties are at a premium in a certain locale such as Orange County, a prospective tenant may be willing to go elsewhere in order to find the right property with the right lease terms. This could be because a landlord failed to offer the appropriate incentives to attract the desired tenant. It may be necessary to give something in order to get a lease signed.
One thing that commercial tenants would probably appreciate is free rent. Some property owners want to know that they have a property rented out for a good while, so it might be necessary to give up a month or more of rent in order to lock in a tenant for an extended lease period. The free rent does not have to come at the beginning of the lease in order to work as an incentive to the tenant. Instead, it could come at some later point in the lease term — perhaps somewhere in the middle.
Providing a higher allowance for tenant improvements could tip the scales when it comes to enticing a tenant to sign a lease. For tenants such as retail establishments, this could be particularly attractive since they often need the space to conform to a certain design. Having the extra improvement allowance could make the difference between closing the deal and starting from scratch to find another tenant.
Free rent and higher tenant improvement allowances are only two of the concessions a landlord may need to make in order to get the right tenant for an Orange County property. Other tenants may want something entirely different such as a shorter lease term, the right to sublet the space or a move-in allowance. Finding the right concession could help ensure that the space has a paying tenant who will want to remain there for a substantial amount of time.
