Commercial lease term length is one of the most strategic decisions a tenant can make, directly affecting the size of concessions like free rent and tenant improvement allowances. Standard terms range from 3–10 years depending on property type, with longer commitments typically unlocking better deal economics. In Colorado’s current tenant-favorable market, SVN Denver recommends locking in 7–10 year terms with built-in flexibility clauses to capture historically generous concessions while protecting against business uncertainty.

Free rent concessions are one of the most powerful tools commercial tenants can negotiate — ranging from 1 month per year of lease term in tight markets to 18 or more months for Class A office space in high-vacancy conditions. This page covers current benchmarks by property type and market, the five main free rent structures, negotiation tactics for maximizing leverage, and a formula for calculating effective rent so tenants can compare proposals accurately. In Denver’s office market, where vacancy has surpassed 26%, SVN Denver advisors are actively securing 12–18 months of free rent on 5–7 year Class A deals.

The optimal commercial real estate hold period ranges from 3 to 10+ years depending on investment strategy, market cycle positioning, and tax objectives. SVN Denver advisors counsel investors to plan for 5–7 year holds while remaining flexible — exiting early when value is created ahead of schedule or extending through market weakness. This guide covers hold periods by strategy type, IRR implications, tax treatment, exit options, and the decision matrix for knowing when to sell.