The Two C's

A Guide To Commercial Abatement

12 January 2023 by Floyd Dunn

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:

• Reduced financial burden for tenants
• Faster repairs and improvements to the property
• Improved tenant satisfaction with the rental situation
• Increased motivation on the part of the landlord to take care of tenants' concerns
• More flexibility in negotiating rent between landlord and tenant

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:

• Reach out to your landlord as soon as you identify an issue
• Be prepared to discuss the details of the situation
• Be open to compromise and alternative solutions
• Negotiate for additional perks, such as free repairs or renovations
• Be sure you understand the details of any agreement you sign

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.

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