Take Permit Process into Account When Setting Rent Commencement Date
Setting a rent commencement date may seem like a routine part of commercial lease negotiations. But if that date is conditioned on an event, it could become complicated, especially if that event involves many variables. Owners and tenants commonly agree that rent will begin a specific number of days after the tenant gets all of the final and unappealable permits it needs to adapt the leased space for its intended use. But the permit process is notoriously difficult and involves moving parts that don’t always line up the way tenants and owners expect.