The cap ratio is based on base rent, rather than rent times occupancy. Especially if you have multiple properties, lowering the rent on any of them will negativ

The cap ratio is based on base rent, rather than rent times occupancy. Especially if you have multiple properties, lowering the rent on any of them will negatively affect the rent on the others. This is especially true in commercial real estate, where your other tenants (e.g. in the same mall) sometimes have a "most favored nation" provision - if anyone else gets lower rent, they do too.