Concession

A concession is a contractual agreement between two parties in which one party (the concessionaire) is granted the right to operate a business or provide a service on property owned by the other party (the grantor). This agreement typically involves the payment of a fee or percentage of revenue to the grantor in exchange for the right to use the property for commercial purposes. Concessions are commonly found in industries such as retail, food and beverage, entertainment, and transportation, and can take many forms, including leases, licenses, and management contracts.

Concession is a key concept that affects property valuation, financing decisions, and investment returns in the triple net lease market. Understanding Concession helps investors make informed acquisition and management decisions.

Concession directly influences how commercial properties are valued, financed, and traded. Changes in Concession can impact cap rates, NOI calculations, and overall investment performance for net lease properties.

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