Article

New space - when to start lease abatement

Provided by:  Jennifer Kirschenbaum, Esq.

January 22, 2019

 

Question: 

 
Hi Jennifer,

I'm looking for a new location for my practice.  My broker identfied a great location that needs work.  We think in lieu of TI, 6 months rent abatement is fair.  When should the rent abatement apply?

Thanks in advance, 
Dr. W
 
 

Answer:

 
Great question.  Completely depends on the work and where the building is, which town is permitting, permit requirements.  I do not want you sitting with a closed space and no right to work, or do work, because you are waiting on permits and you are also paying Base and or Additional Rent.  Best case scenario - Rent Commencement starts when you obtain permits, and thereafter your Abatement commences while you are doing your work.  That is best case.  Worst case with Rent Abatement, Rent Commencement and Rent Abatement apply ON DELIVERY and you are holding the premises with no right to do needed Work for ages.  Lets see what you can get.  BTW - its probably time to turn this over.  Don't let the broker over negotiate.  You'll take away any leverage I have as the lawyer stepping in if the broker keeps it too long.... 

 


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Looking for HIPAA and compliance forms?  
Click here to visit our website.
Have a question or comment for Jennifer?
Contact Jennifer at Jennifer@Kirschenbaumesq.com or  at (516) 747-6700 x. 302.
Interested in having Jennifer speak at an event or
at a residency/fellowship program?
Contact Jennifer directly at (516) 747-6700 x. 302 or at Jennifer@Kirschenbaumesq.com
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New space - when to start lease abatement - January 22, 2019 - Jennifer Kirschenbaum

Article

New space - when to start lease abatement

Provided by:  Jennifer Kirschenbaum, Esq.

January 22, 2019

 

Question: 

 
Hi Jennifer,

I'm looking for a new location for my practice.  My broker identfied a great location that needs work.  We think in lieu of TI, 6 months rent abatement is fair.  When should the rent abatement apply?

Thanks in advance, 
Dr. W
 
 

Answer:

 
Great question.  Completely depends on the work and where the building is, which town is permitting, permit requirements.  I do not want you sitting with a closed space and no right to work, or do work, because you are waiting on permits and you are also paying Base and or Additional Rent.  Best case scenario - Rent Commencement starts when you obtain permits, and thereafter your Abatement commences while you are doing your work.  That is best case.  Worst case with Rent Abatement, Rent Commencement and Rent Abatement apply ON DELIVERY and you are holding the premises with no right to do needed Work for ages.  Lets see what you can get.  BTW - its probably time to turn this over.  Don't let the broker over negotiate.  You'll take away any leverage I have as the lawyer stepping in if the broker keeps it too long.... 

 


Looking for the KK Healthcare Exchange?  Click Here. 

MISSED OUR RECENT WEBINARS?  CLICK HERE ANYTIME!
Looking for HIPAA and compliance forms?  
Click here to visit our website.
Have a question or comment for Jennifer?
Contact Jennifer at Jennifer@Kirschenbaumesq.com or  at (516) 747-6700 x. 302.
Interested in having Jennifer speak at an event or
at a residency/fellowship program?
Contact Jennifer directly at (516) 747-6700 x. 302 or at Jennifer@Kirschenbaumesq.com
Click here to learn about
K&K's Prepaid Legal Audit/Investigation Defense Now!