In a lease structured with no rent for the first two years, who generally benefits from this arrangement?

In a lease structured with no rent for the first two years, the arrangement typically benefits the tenant primarily, as it allows them to occupy the space without the immediate financial burden of rent payments. During this period, tenants can allocate their resources toward other operational costs or investments that could help stabilize or grow their business.

The owner, however, may not identify an immediate benefit, as they are foregoing rental income during those initial years. While they may be securing a long-term tenant and potentially reducing vacancy rates, that does not translate to immediate financial gain.

As a result, the initial premise that neither party benefits overlooks the tenant's significant advantage of free occupancy. Therefore, the conclusion that neither the tenant nor the owner benefits from this arrangement is untrue, as the tenant stands to gain substantially from the zero-rent period.