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ARTICLE · 06 MARCH 2017

Rent Abatement In Commercial Leases

Blaney McMurtry LLP
Blaney McMurtry LLP
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The word "abatement" when used in the context of "rent" ranks second among the seven deadly words a landlord does not want to hear in a lease negotiation.

CanadaReal Estate and Construction
Dennis Tobin
Dennis Tobin
W. Colin Empke
W. Colin Empke
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EXECUTIVE SUMMARY

The word "abatement" when used in the context of "rent" ranks second among the seven deadly words a landlord does not want to hear in a lease negotiation. The others are "termination", "set-off", "allowance", "reimbursement", "self-help" and "the-landlord-shall". Accordingly, the negotiation of express rights of abatement for tenants in commercial, industrial and retail leases can be a difficult task.

This paper will canvas: five categories of circumstances in which rent abatement is relevant; drafting considerations for abatement clauses; availability of insurance; and the impact of insurance on the negotiation of abatement rights. We also review whether the circumstances give rise to common law or statutory rights of abatement.

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