Tenant inducements may be accounted (capitalized) the same as arch or other fees but a savy investor should distinguish the difference. Inducements to a tenant can create the illusion of income that may or may not be real. The income from "induced tenants" is income that might otherwise not exist without the inducement, whereas paying an arch is cost that always takes place in any new development. Capitalizing income is what creates value, but this value is only as good as the predictability of those reponsible for payment. If the tenant is responsible, and credit worthy, then why does he/it need an inducement? Straight line rents vs. inducements should resolve the difference . Personally i bought PZN because of compelling fundamentals-despite the accounting/disclosure problems.