ABSTRACT
Why are landlords so reluctant to drop their asking rents, even at a time of crisis in the commercial property market when prospective tenants are few and far between? In the early 1990s, office developers in London were prepared to concede all manner of inducements to persuade potential tenants to move in: long rent-free periods, large lump sums as “fitting-out allowances”. Would it not have been simpler to drop the asking rent?
