Rent Concession Clause
(Commercial Lease) (Pro-Tenant)

Summary

This rent concession clause is for use in a commercial lease and provides the tenant with a free rent period at the beginning of the lease term. This clause includes practical guidance, drafting notes, and an alternate clause. Commercial landlords may choose to grant rent concessions for a number of reasons, including to attract tenants, to stay competitive in the market, and to help defray the cost of improvements that tenants incur when preparing the premises for occupancy. While some landlords might grant rent concessions regularly, others might grant them only in a depressed market or when facing prolonged vacancies. Whether or not a landlord agrees to grant a rent concession may depend on the strength of the tenant and the overall terms of the lease. Note that this clause provides for a rent concession at the start of the lease term. For a template of lease amendment that modifies an existing lease to provide for a rent concession mid-term, see Amendment to Office Lease Agreement (Base Rent Concession, Extension of Lease Term). Conform defined terms and section references in this clause to those in your lease agreement. This clause favors the tenant. For a rent concession clause that favors the landlord, see Rent Concession Clause (Commercial Lease) (Pro-Landlord). For further guidance on drafting and negotiating commercial leases, see Office Lease Agreements, Retail Lease Agreements, and Industrial Lease Agreements.