Tenant wants to Break Lease to move to another house

[Shelly Rike Mitchell]

Tenant who has been in property for 6 months came to us and wants to break his year long lease to move into another house in the same neighborhood. This neighborhood is a new development of duplexes. Our property is a duplex with 2/2 units and he wants to move into one of the 3/2 units. Other property owners have been running specials on rent to fill the vacancies, charging the same rent of $1200 that he signed a lease with us for the 2/2. Now other 2/2 in the neighborhood are running Rent rates of $1100-1150. We offered for him to break the lease if he lost his deposit and paid a penalty of one months rent. We also offered him a deal that if he signed another year lease we would reduce rent to match market rates of $1100. Now he wants to negotiate to $1050. I think we are already being generous. Thoughts?