Property Management

A Montana commercial property manager who is negotiating a new lease for a client's retail space should understand that 'rent abatement' provisions:

APermanently reduce the base rent for the tenant's entire lease term
BProvide the tenant with free rent periods at the beginning of the lease (as a tenant improvement incentive), which are reflected in the effective rent rather than the base rent✓ Correct
CAllow tenants to reduce rent if their sales are below projections
DOnly apply to medical office leases

Explanation

Rent abatement (free rent periods at lease commencement) is a common commercial leasing incentive. While it affects the effective rent paid over the lease term, the base rent schedule typically remains intact.

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