Community Forum

Most of our properties try to price the units right, then do not offer any concessions. What is your best advise on how to sell without offering a concession when most of your competition is?

Are you on a revenue management program like LRO or Yieldstar? What is your occupancy compared to your comps? Are you meeting and exceeding your budget? When we switched from concessions to effective rent pricing, it was a matter of educating the consumer.

Concessions are common in the Philadelphia market; however, my company chooses not to offer concessions. Instead, we use amenity based pricing which takes into account all factors found on a comparison grid to find the best market rent for our product.

We have used conessions as a method of giving and getting in the negotiation process. The concession typically covers the amount of TI that the tenant will need to get the store open for business.

Certain areas in the Atlanta market is so heavily saturated with new contruction or existing office space that multiple concessions are offered to lease.