---
title: "Rent-free period — Class A Atlas glossary"
description: "Months of zero base rent at the start of (or layered into) a lease term."
canonical: https://classa.info/glossary/rent-free-period
pageType: glossary
lastUpdated: 2026-04-01T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> Months of zero base rent at the start of (or layered into) a lease term.

## TL;DR

- Months of zero base rent at the start of (or layered into) a lease term.
- Rent-free is the most flexible concession — landlords prefer it to face-rent reductions because it preserves the headline rent and the implied valuation.

# Rent-free period

*Lease economics · Global*

## Short definition

Months of zero base rent at the start of (or layered into) a lease term.

## Full definition

Rent-free is the most flexible concession — landlords prefer it to face-rent reductions because it preserves the [headline rent](/glossary/headline-rent) and the implied valuation. Typical rent-free on a 10-year US [Class A](/glossary/class-a) deal is 12-18 months; in London 18-24 months on a 10-year FRI; in Sydney 30+ months. Always model [effective rent](/glossary/effective-rent) (face minus PV of concessions), not the headline.

## Why this matters for Class A leasing

Rent-free period is part of the lease economics vocabulary that institutional Class A occupiers, landlords, and advisers use across Global markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks regional variation alongside the global standard so [cross-border](/topics/cross-border-expansion) occupiers can translate quickly.

## See also

- [Effective rent](/glossary/effective-rent)
- [Face rent](/glossary/face-rent)
- [Tenant improvement allowance (TI / TIA)](/glossary/tenant-improvement-allowance)

## Related guides

- [Negotiating rent-free periods: the playbook](/guides/negotiating-rent-free-periods)

## Related topics

- [**Class A Lease Negotiation**](/topics/class-a-lease-negotiation) — How to negotiate a Class A office lease — the playbook from LOI to signed deal.

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Citation: Source: Class A Atlas (https://classa.info/glossary/rent-free-period), updated 2026-04-01T00:00:00.000Z.