Net lease glossary
Rent Commencement Date
The date the tenant begins paying rent, which may differ from the lease signing date or the date the tenant takes possession.
The rent commencement date is when the tenant's rent obligation begins. It often follows a free-rent or build-out period after the tenant receives possession. In new construction deals, the lease term usually runs from rent commencement, so investors calculating remaining term, rent bump timing, or option periods need the actual date, typically confirmed through a commencement memorandum or the estoppel certificate.