Rent Abatement Clauses
(Commercial Lease) (Pro-Landlord)

Summary

These rent abatement clauses are for use in a commercial lease to provide the tenant with a right to abate rent. These clauses include practical guidance and drafting notes. Rent abatement clauses are used as a lease incentive and as a remedy when the condition of the leased premises or the property, or a violation of the lease, prevents the tenant from using or profiting from the premises. A commercial lease rarely contains one single rent abatement clause. Rather, rent abatement is likely to appear in several different sections of the lease and will apply differently in each scenario. Generally, any lease that contains one or more rent abatement clause should contain a prohibition on the ability of the tenant to withhold rent during the time such clauses are in effect. Clauses governing rent abatement are often highly negotiated by the parties to. These clauses favor the landlord by restricting rent relief to only base rent, limiting it to rent loss or business interruption insurance proceeds received, or otherwise narrowing the scope of when rent relief applies. For clauses favoring the tenant, see Rent Abatement Clauses (Commercial Lease) (Pro-Tenant). Defined terms in this clause should be conformed to those used in the relevant lease. For further guidance on drafting and negotiating rent abatement provisions in commercial leases see Office Lease Agreements, Retail Lease Agreements, and Industrial Lease Agreements.