Landlords use leasing incentives when there is a soft activity of tenants to encourage longer contracts. Incentives may be offered in the form of a rent-free period (up front), a rent abatement or reduction period (usually over lease term) or fitout contribution to fill vacancies and preserve market rents.
The fitout incentives help tenants to either reduce their total fitout cost or balance spend completely, allowing a cost-neutral fitout. Only landlords who have access to capital can offer fitout contributions. Private owners for example, with limited capital may only be able to match incentives by offering rent frees or abatements, so if you need a fitout contribution, it is always important to make this clear up front when dealing with your Tenant Representative or leasing agent.