Why concessions matter more than the rate
Two leases at the same asking rent can differ by hundreds of thousands of dollars once free rent and tenant improvement (TI) allowances are counted. Because concessions are negotiated deal by deal and rarely published, tenants without current deal data tend to accept the first package offered.
Concessions by building class and term
| Building class | Lease term | Free rent (months) | TI allowance ($/SF) |
|---|---|---|---|
| Trophy / Class A+ | 10+ years | data | data |
| Class A | 7 to 10 years | data | data |
| Class A | 5 years | data | data |
| Class B | 5 to 7 years | data | data |
Source and as-of date for the table, plus one sentence on the direction of travel.
What a full package looked like on recent Clarity deals
From Clarity's own case studies, each with the full story linked:
- Greater Washington Partnership: 15 months of free rent and $140/SF in tenant improvements on a seven-year term, concessions landlords typically reserve for tenants signing closer to ten years.
- Doorways for Women & Families: 10 months of free rent on top of a discounted $35/SF rate, plus a shared conference center built at the landlord's sole cost.
- The Navajo Nation: an additional $91,740 ($10/SF) in TI to offset the move, with furniture, cabling, and security covered by the landlord.
How to negotiate a full package
- Create genuine competition: a landlord negotiates differently when two or three buildings are bidding for the same tenancy.
- Ask for the package, not just the rate: free rent, TI, furniture, cabling, signage, and amenity access are all on the table.
- Match concessions to term: a longer commitment should earn a larger package, and the right structure can secure ten-year concessions on a shorter term.
- Get it in the letter of intent: concessions agreed verbally rarely survive to the lease.
Frequently asked questions
What is a typical TI allowance in Washington, DC?
It depends on building class, lease term, and the condition of the space. Current ranges by class are in the table above, from source.
Is free rent negotiable on a renewal?
Yes. A renewal is a new negotiation, and an incumbent tenant with credible alternatives can often secure free rent and an improvement allowance.
Sean Balile
President & Founder, Clarity Tenant Representation. Sean has led clients through more than a thousand lease transactions.