Lease-Up Concessions: Why the Widest Deals Come Early
Up to 12 weeks free at lease-up, tightening as occupancy climbs, with The Travis, 415 Colorado and ATX Tower as examples.
By the Austin High Rise Apartment Team · · 6 min read
Why new towers give away the most free rent
A new tower opens with hundreds of empty units and a lender expecting occupancy to climb on schedule. The fastest lever is free rent. That’s why the widest concessions in Austin are almost always at buildings in lease-up. In Q2 2026, Matthews Real Estate Investment Services reported 6–10 weeks free as typical across Austin and up to 12 weeks at towers still leasing up. The towers on our new construction list are where those deals live.
The concession curve
The pattern is consistent:
- Pre-leasing and early lease-up: widest offers, sometimes with waived fees on top.
- Mid lease-up: offers hold as floors are released in stages, often adjusted monthly.
- Approaching stabilization: offers shrink, sometimes abruptly.
- Stabilized: concessions drop to whatever the market requires.
A building offering 10 weeks in October may drop to 4 by January once it hits its target. The pre-leasing towers, The Travis, 415 Colorado and The Residences at ATX Tower, tend to run the widest windows during lease-up and then tighten as occupancy climbs.
Current examples
| Tower | Status | Current concession |
|---|---|---|
| The Travis | 2026 delivery, leasing up | 2 months free |
| 415 Colorado | 2025, leasing up | 2 months free |
| The Residences at ATX Tower | 2025, leasing up | 2.5 months free |
| Paseo | 2025 | 2.5 months free |
| Solaris House | 2024 | 3 months free |
Offers change monthly. We confirm what’s live before you tour.
Turning weeks free into a real number
Compare offers by net effective rent: total rent over the lease, minus free months, divided by the number of months.
- $3,000 a month, 2 months free on 12 months: $30,000 ÷ 12 = $2,500 net
- $3,000 a month, 2.5 months free on 14 months: $34,500 ÷ 14 = about $2,464 net
Read net effective rent explained for upfront vs. prorated concessions.
The renewal reality
Concessions rarely renew. If your net rent is $2,500 on a $3,000 unit, expect renewal to start near $3,000. Budget for year two now.
How to time it
- Watch occupancy, not the calendar. The biggest drop comes when a tower nears its target, not on a fixed date.
- Stack the seasons. Lease-up plus the November to February slowdown is the strongest combination.
- Get it in writing. The concession belongs in the rider with your unit number.
- Read the clawback. Bigger concessions often come with stricter repayment if you break the lease.
How to read a lease-up offer
Not all “2 months free” offers are the same. Before comparing towers, check these five details:
- Lease length required. Is it 12 months, or 14 or 15? Longer leases spread the free rent further, which changes the net effective rent.
- Upfront or prorated. Upfront means your first months are free. Prorated means a discount every month. Same total, different cash flow.
- Which units qualify. Some offers apply only to select floorplans or move-in dates.
- Fee waivers. Admin or amenity fees are sometimes waived during lease-up. Ask.
- Clawback. If you break the lease, how much of the free rent do you repay?
A side-by-side example
| Tower A | Tower B | |
|---|---|---|
| Gross rent | $3,200 | $3,400 |
| Concession | 1.5 months free, 12-month lease | 2.5 months free, 14-month lease |
| Total paid | $33,600 | $39,100 |
| Net effective | $2,800 | about $2,793 |
Tower B has the higher sticker price and the longer lease, yet nets out slightly lower per month. But if you might leave at month 12, Tower A is the safer choice. That’s why we look at your plans, not just the math.
When a smaller concession is the better deal
A stabilized building with a shorter or no concession can still win if its gross rent is lower, its renewal history is gentler, or the unit is a better fit. The concession is a tiebreaker, not the whole decision. Our new construction vs. established high rise guide covers the rest of the comparison.
Will the window stay open?
Probably not for long. Austin’s construction pipeline has shrunk to 14,610 units from 32,089 completions at the 2024 peak, and vacancy has fallen to 12.29% from 15.78% (Matthews, Q2 2026). Fewer new towers means fewer lease-up deals ahead. See Austin’s supply pipeline.