Tenants, Let’s Talk About Abatements!

October 21 2022

So I’m talking to the tenants:

Are you looking to lease a commercial real estate asset?

Are you looking to find a new location for your restaurant and/or your office space in New York City?

Well, did you know about a thing called abatements?

Now, a lot of people who are not sophisticated in this market go in, and they’re told what the price of the property is going to be, and they’re told when and how long the lease should be for the landlord to take you.

However, they don’t realize they have a little bit of leverage in that negotiation. It could be asking for an adjustment in your term, asking for a good guy clause, and/or asking for the right amount of abatement in your deal.

So your abatement can be free rent period or anything that reduces the cost of your asset.

So if you’re a tenant looking to lease something, don’t just feel like just because there’s a lot of competition that you don’t deserve to get some free rents and/or concessions to help you navigate this market or help you get started in this complex environment.