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Recapture of Abated Rent If Tenant Defaults

Recapture of Abated Rent If Tenant Defaults

In today’s market, it is common for landlords to give fully or partially abated rent as a lease concession to tenants.  Occasionally the abated rent is staggered throughout the term (e.g., one month’s rent is abated every year), but more often the abated rent is front-loaded at the beginning of the term.  Abated rent is factored into the overall economics of a lease deal, based on the tenant’s payment of rent during the entire length of the term.  Landlords should make sure that the lease allows the landlord to recapture the abated rent in the event of a tenant default.

Read the rest of this blog entry at: http://rrlawaz.com/2011/05/recapture-of-abated-rent-if-tenant-defaults/

This blog has permanently moved to: http://rrlawaz.com/blog/


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