They take effect when the owner or owner's agent is unable to attract or close potential lessees and is anxious to lease space. The following signals indicate that concessions are about to start. Leasing signs begin to appear. Leasing signs stay around for a long time. Pennants and flags are pulled out of storage and are used to advertise space.
Small inducements begin to be offered for leasing space.
Physical vacancy rates increase. Guarantees are used to justify income, expenses, and capitalization rates for properties being sold. Replacement costs become a reason to buy. Gross rent multipliers are used when cash flow doesn't work. Ads for personnel for real estate companies begin to decline in the classified sections of newspapers.