Observing the Build

What Exactly Is The Rent Abatement Clause In A Commercial Lease?

If you are a business owner who is looking for commercial office space, you may have come across the term "rent abatement clause." But what exactly is it? And more importantly, should you be looking for a property that has this clause in place? In this blog post, you will learn the pros and cons of the rent abatement clause so you can decide if it's something you want in your next lease agreement.

Rent Abatement: The Basics

The rent abatement clause is a provision in a lease agreement that allows the tenant to stop paying rent for a specified period of time. This clause is usually put in place in order to give the tenant time to make repairs or renovations to the property. The length of time that the rent abatement will last will be stipulated in the lease agreement. For example, the clause may state that the tenant does not have to pay rent for the first 6 months of their lease agreement.

Pros and Cons of Rent Abatement

There are both pros and cons to having a rent abatement clause in your lease agreement. One of the major pros is that it gives you a set period of time in which you do not have to make any rent payments. This can be helpful if you are tight on cash and need some time to get your business up and running. It can also be helpful if you plan on making major renovations to the property, as it will give you time to save up for these expenses.

One of the major cons of the rent abatement clause is that it can put you behind on your rent payments. If you are not able to make the required repairs or renovations within the specified time frame, you will be responsible for catching up on all of the missed rent payments. This can be difficult to do if you are already cash-strapped. 

Ultimately, whether or not a rent abatement clause is right for you will depend on your specific situation. If you are confident that you can make the required repairs or renovations within the specified time frame, then a rent abatement clause can be a helpful way to save money. However, if you are not sure that you will be able to make the required repairs or renovations within the specified time frame, you may want to look for a property that does not have this clause in place. Alternately, you may benefit from a rent abatement clause with a longer time frame, such as 12 months rather than 6 months for repayment. 

If you have any questions about commercial leases, speak with a leasing agent or other specialist. With their help, you can find the right space for your office. A company like Aqua Brite, Inc. has more information.

About Me

Observing the Build

A few weeks ago, we were driving past a construction site. We actually turned around and went back to take a closer look. From the roadside, we were amazed by how much we could observe. We saw cranes lifting heavy pieces of steel. We saw construction workers putting up walls, and others moving soil. All at once, we realized just how much work construction really is. And in that moment, we knew we had to start this blog about construction. We did not waste any time creating it, and now it stands as a resource for anyone else who wants to learn more about the industry.


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