Insights
Free Rent or Discount to Market?
Tortoise or hare? In rent-controlled markets, lease incentives can be framed as a race: discount to market (the tortoise) vs. free rent (the hare).
The math seems straightforward—when will the hare catch up to the tortoise? But tenants who pay market rent behave much differently than tenants with discounts.
Given that this decision repeats hundreds or even thousands of times across large portfolios, wrong assumptions about tenant behaviour can quietly erode returns.