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concession

kuhn-SESH-uhn /kənˈseʃ.ən/

nounB2GRESATTOEFLIELTS

businessprofessional

A thing that is granted, especially in response to demands; a discount, allowance, or incentive offered by a landlord to attract a tenant.

In commercial leasing, concessions are sweetners (like a free month of rent or a cash allowance for renovations) used to attract tenants without lowering the official 'face rent' of the building.

The story behind the word. From the Latin concedere, where con- acts as an intensive prefix and cedere means 'to yield' or 'give way'. In medieval times, a concession was a privilege granted by a sovereign. In modern leasing, it is the landlord 'yielding' a portion of their profit to secure a deal.

Word relationships

compromise: A 'compromise' implies mutual concessions where both sides give up something, whereas a 'lease concession' is specifically an incentive granted by the landlord to the tenant.
incentive: 'Incentive' is a broad term for anything that motivates action, while 'concession' specifically refers to a yielded point or discount in a negotiation.

Commonly confused with

abatement: An abatement is a specific reduction or suspension of a cost (like rent or taxes). A concession is a broader term that includes abatements, cash allowances, or free parking.

Word family

concede (verb): To admit, yield, or grant something.
concessional (adjective): Yielded or granted as a concession.

Collocations

lease concession
tenant concession
make a concession
concession package

Example sentences

"With office vacancy rates at an all-time high, the tenant was able to secure a major concession in the form of a $50,000 tenant improvement allowance." A negotiation strategy for a commercial tenant.
"Rather than lowering the asking rent, the landlord offered a concession of three months of free rent to preserve the property's paper valuation." An analysis of market trends during a downturn.

Memory hook

The landlord CONcedes (gives up) some cash or rent to get you to CONsent to the lease. Concession: what a landlord concedes to close the deal.

When not to use

Do not confuse with a 'concession stand' (a food booth at a stadium), though they share the same root (the right granted by the stadium to sell food).

Fun facts

Landlords prefer offering concessions (like free rent) over lowering the actual rent price because commercial properties are valued based on their 'gross scheduled income.' Lowering the rent lowers the property's resale value, but a concession keeps the official rent high on paper.