Free Rent in Commercial Leases


Did you know that you can be exempt from paying rent for a commercial property for a few months? Some landlords are willing to negotiate free rent in the first couple of months of a new lease or renewal.

If you want to save a few hundred dollars in rent, then trying bringing up free rent with your landlord.

Here’s everything you need to know about free rent in commercial leases:

Free Rent Period in A Commercial Lease

In commercial leases, free rent is called “rent abatement” or “abated rent” and is typically given to tenants in the first few months of a lease or a renewal.

The rent-free period is specified in the contract.

Advantages of Free Rent

  • The money tenants save from free rent can be used to cover any extra expenses that come with moving to a new location.
  • Landlords have an easier time attracting new tenants when they are willing to offer free rent for the first few months. Free rent is most commonly used when the market is slow and landlords are struggling to find tenants.
  • When the market is strong, a landlord may only offer free rent if the tenant agrees on a rent increase in the months that follow the free rent period. Landlords are also more willing to negotiate a free rent period when the lease is long-term (5 years or longer).If you’re hoping to be exempt from rent for a few months, you need to bring it up with your landlord during the Letter of Intent (LOI) stage.

Free Rent Options

Office Building
Landlords can offer free tenants in several ways that include:

  • Making the base rent free
  • Offering a free early occupancy month
  • Offering free rent in exchange for repairs
  • Offering free rent for months the property is modified/renovated

Bear in mind that when the demand for real estate is high, landlords will probably not negotiate free rent.

If you’re looking for commercial real estate and want free rent, work with your real estate agent to negotiate a deal with your landlord. Experienced commercial real estate agents specialize in making deals that all parties are happy with. Their knowledge and expertise give you the information you need to negotiate free rent and save money.

Macomb Commercial Real Estate

Macomb Commercial Real Estate has been supporting businesses across all industries by finding commercial spaces that suit their needs and fit their budgets.

We offer real estate services to buyers, sellers, landlords, and tenants. We can help you buy office spaces for sale Macomb and industrial buildings in Macomb, Michigan. Get in touch with us for a free consultation.

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