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Office lease definition

What is free rent?

A negotiated period when one or more rent components are abated. The lease determines which amounts stop and which continue.

Updated 2026-09-12
Fast answerA negotiated period when one or more rent components are abated. The lease determines which amounts stop and which continue.

Why it matters

A headline number of free months can overstate value if additional rent, parking or other charges continue.

What to request

Confirm dates, affected rent components, conditions, clawbacks and treatment after default.

Planning example

Place the abatement on the actual monthly cash-flow schedule. The example organizes arithmetic or evidence only; the transaction documents and facts determine the result.

Related decisions

Connect this term to the area, cost, building, flexibility and document provisions elsewhere in the office decision file.

Evidence boundary: office availability and quoted economics change. Confirm current premises, authority, area, costs, permitted use and documents for the specific transaction. Read the methodology.

Free rent questions

Plain-language answers for Canadian office decisions.

What does free rent mean in an office lease?

A negotiated period when one or more rent components are abated. The lease determines which amounts stop and which continue.

Why does free rent matter?

A headline number of free months can overstate value if additional rent, parking or other charges continue.