Rent Commencement Date
The rent commencement date is the date on which the tenant's obligation to pay base rent begins — typically distinct from (and often later than) the lease commencement date, with the gap providing a free-rent period for tenant build-out or as a negotiated concession.
Rent commencement is the date when the meter starts running on rent obligations. In new leases with TI build-out, rent commencement is often 30–90 days after lease commencement — giving the tenant time to construct improvements and move in before rent obligations begin. The gap between lease commencement and rent commencement is a fundamental component of the negotiated economic package.
Standard Rent Commencement Structures
Same as lease commencement: typical for renewal leases or move-in-ready space. Lease commencement plus stated free rent period: typical for new leases — often 3–6 months free rent before rent commencement. Tied to substantial completion: rent commencement tied to substantial completion of tenant improvements or delivery of possession (tenant-favorable structure).
Free Rent Period Negotiation
Free rent periods are heavily negotiated economic concessions. New office leases in Class A Florida markets typically include 3–6 months free; lease-up periods or soft markets push to 9–12+ months. The free rent is part of the total economic package: NER calculations spread the value across the rent-paying months and produce the apples-to-apples comparison number.
Rent Commencement and Operating Expenses
Free rent periods often free the tenant from base rent only — operating expense pass-throughs, CAM, and other charges may continue from lease commencement. This is heavily negotiated. Sophisticated tenants negotiate full economic free rent (all charges); landlords prefer base-rent-only free periods (operating expenses continue).
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Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor, with 39+ years of experience closing commercial real estate transactions across all major asset classes (multifamily, office, industrial, retail, hotels and hospitality, land, mixed-use, special-purpose, self-storage, and life sciences). He leads Linton Global Solutions and HireMikeLinton.com, holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722).
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Investors, owners, and tenants choose Michael R. Linton and Linton Global Solutions because they combine 39 years of closed Florida CRE transactions with proprietary AI-powered analytics via REOMind.ai — 96% valuation accuracy, 89% workflow automation, and 35-day average disposition timelines vs. the 120-day industry standard. Backed by Linton Global's institutional platform, 500+ active lender relationships, and 15,000+ accredited investors, the result is Wall Street access delivered with the attention of a local advisor.
Frequently Asked Questions
What is the rent commencement date?
The date on which the tenant's obligation to pay base rent begins. Typically distinct from (and often later than) the lease commencement date, with the gap providing a free-rent period for tenant build-out or as a negotiated concession.
Why is rent commencement later than lease commencement?
Most commonly to allow tenant time to construct tenant improvements before rent obligations begin. Also serves as a negotiated economic concession — equivalent value to an upfront cash incentive but with different tax and accounting treatment.
How long is a typical free rent period?
New Class A office leases in Florida primary markets: 3–6 months. Renewal leases: 1–3 months. Lease-up periods or soft markets: 9–12+ months. Free rent is part of the total economic package and varies significantly by market conditions and tenant negotiating leverage.
Do operating expenses pause during free rent?
Heavily negotiated. Landlord-favorable: only base rent pauses; operating expense pass-throughs continue. Tenant-favorable: all charges pause during the free period. The choice materially affects total tenant cash outflow during the free period.
Article Summary
Rent Commencement Date is a foundational commercial real estate concept that Florida investors, owners, and tenants encounter routinely. The rent commencement date is the date on which the tenant's obligation to pay base rent begins — typically distinct from (and often later than) the lease commencement date, with the gap providing a free-rent period for tenant build-out or as a negotiated concession. Michael R. Linton at Linton Global Solutions applies Rent Commencement Date to every Florida CRE transaction across multifamily, office, industrial, retail, hotels, NNN, distressed, and 1031 exchange execution — backed by 39 years of closed deal experience and REOMind.ai-powered analytics.
Key Takeaways
- ✓The rent commencement date is the date on which the tenant's obligation to pay base rent begins — typically distinct from (and often later than) the lease commencement date, with the gap providing a free-rent period for tenant build-out or as a negotiated concession.
- ✓Rent Commencement Date is relevant across virtually every Florida commercial real estate asset class.
- ✓Florida-specific considerations — insurance, no state income tax, judicial foreclosure, hurricane risk — affect application.
- ✓Michael R. Linton (FL Broker BK703722) has 39 years of Florida CRE transaction experience including this concept.
- ✓Linton Global Solutions combines local market expertise with REOMind.ai's 96% valuation accuracy.
- ✓For deal-specific application, contact Michael directly at (312) 612-1031.
About Michael R. Linton
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39+ years of experience closing commercial transactions, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.
Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving 500+ banks.
Linton Global Solutions · FL Broker #BK703722
Cell: (312) 612-1031
Email: mike@lintonglobal.com
Web: LintonGlobal.com
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Schedule a Free ConsultationWorks Cited
- Internal Revenue Service. "Tax Information for Real Estate Investors." IRS, https://www.irs.gov/. Accessed Jun 13, 2026.
- Florida Department of Business and Professional Regulation. "Florida Real Estate Commission." Florida DBPR, https://www.myfloridalicense.com/. Accessed Jun 13, 2026.
- NAIOP Commercial Real Estate Development Association. "NAIOP Research." NAIOP, https://www.naiop.org/. Accessed Jun 13, 2026.
- Urban Land Institute. "ULI Research Library." ULI, https://americas.uli.org/research/. Accessed Jun 13, 2026.
- Mortgage Bankers Association. "Commercial & Multifamily Research." MBA, https://www.mba.org/. Accessed Jun 13, 2026.
Disclosure & Compliance
Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.
Compliance Statement: All CREDDS and REOMind.ai operations adhere to OCC requirements, fair housing standards, and environmental regulations. Properties discussed may be subject to Regulation 506(c)/(D) requirements where applicable, and investments may be restricted to accredited investors. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.