A period during which a tenant pays reduced or no rent, typically granted at lease commencement as a concession in exchange for signing a long-term lease or completing tenant improvements.
Rent abatement is one of the most common landlord concessions in a soft leasing market. It is distinct from a free rent period in that abatement can be partial (e.g., 50% of base rent) while free rent is a full waiver. Many leases include claw-back provisions: if the tenant defaults during the lease term, the abated rent becomes immediately due. Tenants should confirm whether abatement applies to base rent only or also to operating expenses and other charges. The net effective rent calculation must account for abatement to compare deals accurately.
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