The rent commencement date is the date on which a tenant's obligation to pay rent begins, which can be delayed from the lease commencement date to accommodate a buildout or fit-out period. Negotiating a reasonable gap between the two dates gives tenants time to complete tenant improvements without paying rent on space they can't yet fully use.
Common rent commencement triggers
| Trigger type | Description |
|---|---|
| Fixed calendar date | Rent starts on a specific pre-agreed date regardless of buildout status |
| Substantial completion of buildout | Rent starts once tenant improvements reach a defined completion milestone |
| Certificate of occupancy issuance | Rent starts when the space receives its CO, allowing legal occupancy |
What to watch for before committing
Trigger definition clarity
Confirm exactly what event triggers rent commencement, since vague definitions can create disputes over the actual start date.
Buildout timeline realism
Negotiate a rent commencement delay period that realistically accounts for your specific buildout scope and potential delays.
Tenant-caused delay provisions
Understand what happens to rent commencement if delays are caused by the tenant rather than the landlord or contractors.
Force majeure and external delays
Confirm how the lease handles rent commencement delays caused by permitting, supply chain, or other factors outside either party's control.
Free rent period interaction
Understand how any negotiated free rent period interacts with the rent commencement date.
Documentation requirements
Ensure the lease specifies clear documentation requirements for confirming when rent commencement actually occurs.
When you need to know this
- Negotiating buildout timelines — securing adequate time to complete tenant improvements before rent obligations begin
- Budgeting move-in costs — understanding exactly when rent payment obligations start relative to your operational timeline
- Managing construction delay risk — protecting against rent starting before your space is actually usable
- Comparing competing lease offers — evaluating how different rent commencement structures affect your true occupancy cost timeline
Frequently asked questions
Ready to negotiate your buildout timeline?
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