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Inducement

See Concessions.

Frequently Asked Questions about Inducements in Commercial Real Estate Leasing

An Inducement is a benefit or concession offered by a landlord to attract a tenant to sign a lease. It is generally synonymous with the term Concessions.

Common inducements include:

Free rent periods

Tenant improvement allowances

Moving cost reimbursements

Reduced rent for an initial lease term

Inducements are used to make a lease offer more attractive, especially in competitive or high-vacancy markets. They help close deals and secure occupancy without lowering the headline rental rate.

No, but they are related. Tenant Improvements (TIs) are a specific type of inducement where the landlord funds or reimburses buildout costs. Inducements can include TIs but also other financial perks.

You can refer to the related glossary entries for:

[Concessions]
[Tenant Improvements]

Or download the full CRE Glossary eBook for more definitions and context.

Click here to get this CRE Glossary in an eBook (PDF) format.
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