A period during which the tenant pays reduced or no rent, typically granted at lease commencement as an incentive (free rent period) or following a casualty, landlord default, or force majeure event.
Abatement can be structured as a full rent holiday, partial abatement, or CAM-only abatement. The abatement period does not extend the lease term unless the lease says otherwise.
A lease granted 6 months of free rent on base rent but was silent on CAM during the abatement period. The landlord billed full CAM estimates during the abatement months. The tenant assumed "free rent" meant no occupancy costs - resulting in $45,000 of unexpected CAM charges.
Clarify whether your abatement period covers only base rent or also CAM and other charges. Negotiate for full occupancy cost abatement (base rent + CAM) during free rent periods.
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Start Free AuditThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.