Do small office tenants get the same lease concessions as large tenants in Denver?

No, not close. The headline numbers you see quoted, roughly a month of free rent per year of term and elevated TI allowances, describe the market average across all deal sizes, but small tenants in the 2,000 to 10,000 square foot range get a fraction of what a 30,000-plus square foot tenant negotiates. Small tenants typically see as-is delivery or a basic cosmetic refresh (paint and carpet) plus 0.5 to 1 month of free rent per year of term. Large tenants regularly negotiate $50 to $100-plus per square foot in TI, six months to over a year of free rent, and extras like signage and dedicated parking. The gap is structural, not arbitrary, and knowing why it exists changes how you negotiate.

I get some version of this question from almost every small-tenant client before we start negotiating: "I keep reading about a month of free rent per year and huge TI allowances. Do I actually get that at 4,000 square feet?"

The honest answer is usually not at that scale, and pretending otherwise in a negotiation wastes time and credibility with the landlord. But that doesn't mean small tenants have no leverage. It means the leverage looks different, and most small tenants never learn what it actually is.

What small tenants actually get, and what large tenants get instead

Here's the concession gap in specific terms, based on what I'm seeing across Denver deals in the 2,000 to 10,000 square foot range compared to larger transactions this year.

Small tenants (roughly 2,000 to 10,000 SF):

• Tenant improvements: Minimal. Most deals land at as-is delivery, or a basic cosmetic package: new paint, new carpet, maybe a light fixture swap. Full buildouts are rare at this size.
• Free rent: 0.5 to 1 month per year of lease term. On a 5-year deal, that's roughly 2.5 to 5 months total.
• Extras: Rare. Signage, dedicated parking, and custom security access show up occasionally but aren't the norm.

Large tenants (roughly 30,000 SF and up):

• Tenant improvements: Substantial. $50 to $100-plus per square foot, often as a full turnkey buildout the landlord manages and delivers.
• Free rent: 6 months to over a year, frequently structured across the term rather than all up front.
• Extras: Building signage, discounted or free parking passes, and custom access systems negotiated as standard parts of the deal.

That's not a small gap. On a straight percentage basis, a large tenant's free rent alone can run four to ten times what a small tenant gets per year of term, before TI is even factored in.

If you're a small tenant who read a Denver market update quoting a month of free rent per year and assumed that applied to your deal, the realistic concession range across deal types is worth understanding before you walk into a renewal or new-deal negotiation with the wrong number in your head.

Why the gap exists, and what it means for how you negotiate

Two structural reasons drive this, and both matter for how you approach your own deal.

First, a large tenant can make or break the building's financing. A 40,000 square foot anchor tenant signing a 10-year lease materially changes a building's cash flow, and by extension, the landlord's ability to refinance or secure a loan against the asset. That tenant is worth fighting for with real dollars. A 4,000 square foot tenant, while a perfectly good customer, doesn't move the needle on the building's debt service the same way. The landlord's incentive to spend big on TI and free rent scales with how much that tenant's signature actually protects the building's value.

Second, the legal and administrative cost of negotiating a lease is roughly flat regardless of size. Drafting, reviewing, and executing a lease costs the landlord's team and legal counsel about the same amount of time and money whether the space is 3,000 square feet or 30,000. That means the landlord's return on every dollar of concession granted is dramatically higher on large square footage. A landlord spending $40/SF in TI on 30,000 square feet is investing $1.2 million to secure a tenant that matters to the building's financials. That same $40/SF on 4,000 square feet is $160,000 for a tenant whose lease is a smaller line item, and the landlord knows it.

This isn't a landlord being unfair to small tenants. It's the same logic that shows up in every market where fixed transaction costs exist alongside variable-size deals. Understanding it changes what you should actually ask for.

If minimal TI and modest free rent is the real range for a lease your size, don't waste negotiating capital chasing a large-tenant concession package that isn't coming. Instead:

• Negotiate the free rent structure, not just the amount. Ask for it front-loaded rather than spread across the term. It's the same total dollars, but front-loaded free rent helps cash flow when you need it most, right after a move.
• Ask for a modest cosmetic allowance even on an as-is deal. Paint and carpet cost the landlord relatively little and are the most realistic ask at this size, but landlords rarely volunteer it. You have to raise it.
• Use term length as your real lever. A 3-year term versus a 5-year term changes what a landlord is willing to grant, even at small square footage, because term length is the one variable at your scale that meaningfully affects the landlord's risk.
• Don't skip representation because the deal is small. The tenant rep broker's fee is paid by the landlord's side in nearly every Denver transaction, regardless of deal size, so a small tenant negotiating alone isn't saving money. They're negotiating without a market read.

The market-wide concession numbers are real. They're just not your number if you're signing 4,000 square feet. Know the range that actually applies to your deal size before you walk into the room.

Frequently asked questions

How much free rent should a small office tenant expect in Denver?

Roughly 0.5 to 1 month of free rent per year of lease term for tenants in the 2,000 to 10,000 square foot range, compared to 6 months to over a year for large tenants above 30,000 square feet. On a typical 5-year small-tenant deal, that's about 2.5 to 5 months total.

Do small tenants get tenant improvement allowances in Denver?

Usually minimal. Most small-tenant deals land at as-is delivery or a basic cosmetic package (paint and carpet) rather than a per-square-foot TI allowance. Large tenants regularly negotiate $50 to $100-plus per square foot for a full buildout.

Why do landlords give bigger concessions to large tenants?

Two reasons. A large tenant's lease materially affects the building's cash flow and the landlord's ability to finance or refinance the asset, so the landlord has more at stake protecting that tenant. And the legal and administrative cost of negotiating a lease is roughly flat regardless of size, so the return on every concession dollar is much higher on large square footage.

Should a small tenant hire a broker if the concessions are smaller anyway?

Yes. The tenant rep broker's commission is paid by the landlord's side in nearly every Denver deal, so a small tenant negotiating without representation isn't saving money, they're negotiating without a market benchmark. Getting the realistic range right is exactly what representation is for at this size.

What should a small tenant negotiate for instead of a big TI allowance?

Front-loaded free rent, a modest cosmetic allowance even on an as-is deal, and a term length that matches your actual risk tolerance. These are the levers most available at 2,000 to 10,000 square feet, even when a large-tenant-style TI package isn't realistic.

Every Denver concession headline is a market average, and averages hide the size-based gap that actually determines your deal. Know your bracket before you negotiate.

If you're working through a lease decision in Denver, whether that's a renewal, a relocation, or a footprint question your CFO is pushing on, I'm happy to run the numbers with you. Schedule a conversation.

About Brian McCririe
Brian McCririe is Executive Managing Director of SVN | Denver Commercial and National Council Chair for Occupier Services across the SVN network. After 25 years representing tenants and investors across global markets, he now focuses on the Denver Metro area helping companies navigate leases, acquisitions, and the gap between what landlords offer and what occupiers deserve. He leads one of the metro's top tenant rep practices and writes about the deals, decisions, and market shifts that matter to corporate real estate leaders.