Rent-Free Office Space Entices Tenants In Montgomery County

DAMASCUS, Md. (WUSA) -- The vacancy rate for office space in Montgomery County is hovering at about 17 percent. Because of the glut of available units, landlords are offering huge incentives to entice renters.

Calvin Ko, who's now renting a two office suite in Damascus, says he got a real bargain.

"About 40 percent less than a few months ago," Ko says.

Tenants are being offered on average six months rent-free leases, and in some cases, up to a year rent-free.

Analysts expect things to get worse for landlords before they get better. Some employers are moving out of large spaces and into smaller, less expensive ones. Buyers are waiting for prices to drop even lower, so renters are calling the shots.