In one sentence
Rent discounts or incentives offered to attract or retain tenants, such as free months, reducing effective rent.
The longer version
Concessions, free rent, reduced deposits, or move-in incentives, lower the effective rent a property actually collects. They are common in lease-up and soft markets and mask the true net rent.
Lenders underwrite effective rent net of concessions, because a rent roll's stated rents can overstate real income when concessions are heavy.
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