The date a tenant's lease term officially begins and, absent a free-rent period, when rent and CAM obligations commence. The commencement date determines the start of all lease obligation periods including the base year.
Commencement may be triggered by a fixed calendar date, delivery of possession, substantial completion of tenant improvements, or a tenant opening for business. In leases with multiple commencement triggers, landlords may argue commencement occurs earlier than tenants expect.
A landlord argued that lease commencement occurred when the shell was delivered - before tenant improvements were complete. This moved the base year commencement forward by 4 months into a period of unusually high construction costs, inflating the base year OpEx.
Negotiate a commencement date tied to a clear, objective event (e.g., "date tenant opens for business" or "date tenant improvement construction is substantially complete").
Ready to check your numbers? Start a free CAM scan.
Scan My Lease NowUpload two PDFs. 12 detection rules. Under 5 minutes. Free.
Start Free AuditThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.