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
Understanding 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.
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Frequently Asked Questions
What is Concession in commercial real estate?
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
Why is Concession important for NNN investors?
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.
How does Concession affect property value?
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.
Where can I learn more about Concession?
NNN Triple Net's Learning Center offers practical guides covering Concession and related CRE concepts. Visit the glossary for related terms and explore our calculators for practical application.