# Class A Lease Negotiation

> Class A lease negotiation is won in the LOI: lock in effective rent, free rent, TI allowance, escalators, options, and exit rights before the long-form lease drafting begins.

**Canonical URL:** https://classa.info/topics/class-a-lease-negotiation
**Page type:** topic-pillar
**Last updated:** 2026-05-29T16:17:29.065Z
**License:** CC BY 4.0 with attribution to Class A Atlas (https://classa.info).

## TL;DR
- Always negotiate to effective rent, not headline.
- The LOI is where 80% of value is captured — lease drafting is execution.
- Free-rent abatement is the most negotiable single line item.
- Tenant improvement allowance (TIA) is the second most negotiable.
- Options to extend, expansion rights, and termination rights are the third front.
- Bring two real bids; landlords negotiate harder when you can walk.
- Negotiate opex caps, base-year gross-ups, and audit rights — not just rent.

## Key facts
- **spokeGuides**: 6
- **spokeGlossary**: 15
- **spokeTools**: 3
- **cityCoverage**: 123

## FAQ
### Should I sign the LOI before the lease is drafted?
Yes — but only after every economic and structural concession is captured. Anything missing from the LOI is unlikely to make the long-form.

### How much free rent is typical?
1–1.5 months per lease year in US Class A. In lease-up product or soft markets, 2 months per lease year is achievable.

### Is the TI allowance in cash or in-kind?
Negotiate cash. Cash gives you vendor control and prevents landlord-favored markups on construction line items.

### What is the single biggest mistake?
Negotiating to face rent instead of effective rent. Two deals with the same headline rent can have a 30%+ gap once concessions are modeled.

### How long does a Class A lease negotiation take?
12–20 weeks from RFP issuance to fully signed lease for a typical 50,000–150,000 sf US Class A deal.

### Do I need a tenant rep broker?
Yes. Landlords pay both sides; not engaging tenant rep does not save fees, it just gives the landlord uncontested control of the negotiation.

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Citation: Source: Class A Atlas (https://classa.info/topics/class-a-lease-negotiation), updated 2026-05-29T16:17:29.065Z.