Lease incentive definition
/What is a Lease Incentive?
A lease incentive is an inducement for a lessee to sign a lease. In these arrangements, either the lessor directly pays for expenditures, or the lessee does so and is then reimbursed by the lessor. A lessor enters into these arrangements in order to fill vacant office space. Such deals are especially common in a soft real estate market.
Example of a Lease Incentive
A lessor may offer to take over the remaining payments on the lessee’s existing lease, pay moving costs, or make a cash payment to the lessee.