If you're a business owner, chances are you've heard of commercial abatement. But what is it exactly? And why is it important for businesses? According to Merriam-Webster, abatement is "the act or process of reducing... something,"— in this case, that something is rent. So here's what you need to know about the basics of commercial rent abatement and how it works.
What Is Commercial Rent Abatement?
In the simplest terms, commercial rent abatement is a form of reduced rent offered to commercial tenants who are unable to fully utilize their property. This move is not out of generosity on the part of the landlord or inability to pay on the part of the commercial tenant, however. Rather, the abatement is due to the property being uninhabitable due to damage or circumstances outside the tenant's control. During this period, the landlord agrees to waive some or all of the tenant's rental obligations in exchange for the inconvenience.
Why Is It Important?
Commercial rent abatement is important because it helps ensure that tenants are not unfairly burdened with space that they cannot use. They may need to rent a secondary location while the landlord makes repairs or just be reimbursed for the inconvenience of everything. Additionally, commercial abatement encourages the landlord to be expeditious with the repairs.
What Are the Benefits of Commercial Rent Abatements?
There are many benefits to commercial rent abatements, including:
Additionally, commercial rent abatements often come with additional incentives, such as free repairs and renovations.
How Can You Negotiate Commercial Rent Abatement in Your Next Lease?
Negotiating commercial rent abatement is often a process of compromise between you and your landlord. However, there are some steps you can take to ensure you get the most out of any agreement:
By following these steps and utilizing an active voice, you can ensure that you and your landlord come to an agreement that's beneficial for you both.
Commercial rent abatement is an important tool for businesses, as it helps ensure you're not stuck with a space you can't use. By understanding the basics of commercial abatement and utilizing negotiating favorable terms, you can ensure you get the most out of your agreement with your next lease.
Welcome to a blog about the two C's. The two C's, as you might have already guessed are construction and contractors. These words are closely related. "Construction" refers to the art and science of building something. That something could be anything from a shed to a sidewalk. "Contractors" are the people who do the building. There are general contractors who do all sorts of building work, and then there are specialists who do work such as plumbing, electrical work, and drywall. Stop by and read a few articles when you have the time, and we promise you'll learn more about these two C's.