{"id":545,"date":"2026-09-07T15:22:00","date_gmt":"2026-09-07T12:22:00","guid":{"rendered":"https:\/\/f-375.ru\/?p=545"},"modified":"2026-09-07T15:22:00","modified_gmt":"2026-09-07T12:22:00","slug":"arendnye-kanikuly-pri-arende-ofisa","status":"publish","type":"post","link":"https:\/\/f-375.ru\/en\/arendnye-kanikuly-pri-arende-ofisa\/","title":{"rendered":"Office Rent-Free Periods: Timing, Payments and Savings"},"content":{"rendered":"

A rent-free period in an office lease is an agreed period during which the landlord reduces or waives the base rent. This helps a business prepare the premises, carry out fit-out works and organise its move. The precise arrangement and payment schedule must be recorded in the lease.<\/p>\n

However, a rent-free period does not make running the office free of charge. Service charges, utilities, parking and the security deposit may still be payable. Assess an offer of \u201ctwo months rent-free\u201d against three criteria: which amounts are waived, when the concession starts and how much the business will pay over the full lease term.<\/p>\n

How does a rent-free period differ from deferred payment?<\/h2>\n

During negotiations, the same term is sometimes used for different arrangements. The distinction matters to the company\u2019s budget.<\/p>\n\n\n\n\n\n\n\n\n\n
Terms<\/th>\nWhat happens to payments<\/th>\nDoes it create a saving?<\/th>\n<\/tr>\n<\/thead>\n
Temporary rent reduction<\/td>\nA lower rent is charged for an agreed period<\/td>\nYes, by the amount of the discount<\/td>\n<\/tr>\n
Base rent waiver<\/td>\nNo base rent is charged for the agreed period<\/td>\nYes, but other charges may still apply<\/td>\n<\/tr>\n
Deferred payment<\/td>\nRent already charged may be paid later<\/td>\nThe rent amount itself is not reduced<\/td>\n<\/tr>\n
Payment by instalments<\/td>\nThe payment is divided into parts<\/td>\nThe rent amount itself is not reduced<\/td>\n<\/tr>\n
Agreed fit-out costs offset against rent<\/td>\nThe cost of works accepted by the landlord is credited towards payments<\/td>\nDepends on the cost of the works and the offset terms<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

If the landlord offers no payments for the first two months, clarify whether those amounts are waived or added to later invoices. The latter is deferred payment. It may ease the move, but it does not reduce the overall rental cost.<\/p>\n

The lease determines the procedure, terms and deadlines for rent payments. A verbal agreement therefore needs to be translated into specific amounts and dates. The legal basis is Article 614 of the Russian Civil Code<\/a>.<\/p>\n

When can a rent-free period be negotiated, and for how long?<\/h2>\n

For a new office lease, the time needed to prepare the premises is a strong negotiating point. A company can support its request with details of finishing works, equipment installation, connectivity and relocating workstations.<\/p>\n

A fitted office may need only a short settling-in period. Shell-and-core space requires design and construction work, so negotiations may involve several months. The distinction between a short moving-in concession and a longer fit-out period is noted, for example, by IPG.Estate<\/a>.<\/p>\n

There is no universal rent-free period for an office of a given size. Support the request with a programme of works:<\/p>\n

    \n
  1. Measured surveys, the design brief and design work.<\/li>\n
  2. Design approvals and contractor access arrangements.<\/li>\n
  3. Delivery of materials and equipment.<\/li>\n
  4. Construction and installation works.<\/li>\n
  5. Systems testing, furniture installation and the move.<\/li>\n<\/ol>\n

    Some stages may run in parallel. It makes sense to negotiate the rent-free period around the realistic date when the office will be ready, rather than simply adding up every duration in the estimate. The scope of work is explained in detail in the article on office fit-out<\/a>.<\/p>\n

    In a standard commercial transaction, the parties agree the concession: the need for fit-out work does not itself entitle the tenant to stop paying under the current schedule. The general principle of freedom of contract is set out in Article 421 of the Russian Civil Code<\/a>.<\/p>\n

    For negotiations, prepare not only your preferred period but also a case for the landlord: the intended lease term, the budget for agreed improvements and a clear schedule for moving to full rent. A long lease may form part of the offer, but its obligations should be assessed in advance.<\/p>\n

    Which charges still apply during a rent-free period?<\/h2>\n

    Before signing the lease, request separate payment calculations for the concession period and a normal rental month.<\/p>\n\n\n\n\n\n\n\n\n\n\n
    Payment category<\/th>\nWhat to clarify<\/th>\n<\/tr>\n<\/thead>\n
    Base rent<\/td>\nWhether it is reduced in full or in part, and whether any rent accrues for later payment<\/td>\n<\/tr>\n
    Operating expenses \u2014 OPEX<\/td>\nWhether they apply from the handover date, and at what amount<\/td>\n<\/tr>\n
    Utilities<\/td>\nHow actual consumption and fixed charges are accounted for<\/td>\n<\/tr>\n
    Parking and additional services<\/td>\nWhether they are included in the concession or paid separately<\/td>\n<\/tr>\n
    Security deposit<\/td>\nWhen it is paid, which rent is used to calculate it and when it is refunded<\/td>\n<\/tr>\n
    Fit-out arrangements<\/td>\nWhether waste disposal, access and construction logistics attract separate charges<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Also check how VAT is presented in each offer: included in the amount, added separately or not charged. Compare offers on the same tax basis.<\/p>\n

    Treat the security deposit separately. Even if it is refundable, the company needs cash to pay it. Lower rental expenses therefore do not necessarily mean an equivalent reduction in the upfront budget.<\/p>\n

    The components of recurring costs and calculation methods are explained in the article on office operating costs<\/a>.<\/p>\n

    How to calculate the benefit: a 300 m\u00b2 office example<\/h2>\n

    Consider an illustrative offer. All amounts below exclude VAT, with no indexation. This demonstrates the method rather than current market rates.<\/p>\n\n\n\n\n\n\n\n\n\n\n
    Parameter<\/th>\nTerms<\/th>\n<\/tr>\n<\/thead>\n
    Office Size<\/td>\n300 sq m<\/td>\n<\/tr>\n
    Base rent<\/td>\n\u20bd60,000\/m\u00b2 per year<\/td>\n<\/tr>\n
    Monthly base rent<\/td>\n1 500 000 \u20bd<\/td>\n<\/tr>\n
    Rent-free period<\/td>\nNo base rent charged for the first 2 full months<\/td>\n<\/tr>\n
    Service charges<\/td>\n\u20bd10,000\/m\u00b2 per year, payable for all 12 months<\/td>\n<\/tr>\n
    Utilities<\/td>\nAssumed at \u20bd50,000 per month for all 12 months<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Without the rent-free period, annual base rent would be:<\/p>\n

    300 \u00d7 60,000 = \u20bd18,000,000.<\/strong><\/p>\n

    With two rent-free months:<\/p>\n

    1,500,000 \u00d7 10 = \u20bd15,000,000.<\/strong><\/p>\n

    The saving on base rent in the first year is 3 000 000 \u20bd<\/strong>. Service charges add \u20bd3,000,000, and utilities \u20bd600,000.<\/p>\n

    The total payable across these three categories is:<\/p>\n

    15,000,000 + 3,000,000 + 600,000 = \u20bd18,600,000 for the first year.<\/strong><\/p>\n

    Even during the rent-free period, monthly payments in this example total \u20bd300,000: \u20bd250,000 in service charges and \u20bd50,000 for utilities. Fit-out, furniture, parking and the security deposit are not included.<\/p>\n

    The effective base rent is useful for comparing offers:<\/p>\n

    Effective annual base rent per m\u00b2 = base rent actually charged over 12 months \u00f7 floor area.<\/strong><\/p>\n

    In our example, this is 15,000,000 \u00f7 300 = \u20bd50,000\/m\u00b2 per year<\/strong>. Including the assumed service charges and utility costs gives \u20bd62,000\/m\u00b2 per year<\/strong>. These measures answer different questions: the first describes rent, while the second is the total of the three cost categories included.<\/p>\n

    Which is better: two rent-free months or a 6% discount?<\/h3>\n

    Compare the same office over three years. Assume all other terms are identical, there is no indexation and the discount applies for all 36 months.<\/p>\n\n\n\n\n\n\n
    Option<\/th>\nBase rent for the first year<\/th>\nBase rent over 3 years<\/th>\n<\/tr>\n<\/thead>\n
    2 rent-free months, then \u20bd1,500,000 per month<\/td>\n15 000 000 \u20bd<\/td>\n51 000 000 \u20bd<\/td>\n<\/tr>\n
    6% discount with no rent-free period: \u20bd1,410,000 per month<\/td>\n16 920 000 \u20bd<\/td>\n50 760 000 \u20bd<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    The rent-free period reduces first-year payments more. In this example, the ongoing discount produces a lower total over three years, by \u20bd240,000.<\/p>\n

    With a constant rent, two free months over a 36-month lease are equivalent to:<\/p>\n

    2 \u00f7 36 \u00d7 100% \u2248 5.56%.<\/strong><\/p>\n

    This compares nominal amounts. It does not account for the time value of money: for a company financing its move with a loan, earlier savings may have additional value. Indexation, partial discounts or different payment dates require a month-by-month calculation.<\/p>\n

    When does the rent-free period start?<\/h2>\n

    The dates of signing the lease, handing over the premises and obtaining actual access for fit-out may differ. If the rent-free period has started but the contractor cannot begin work, some of the agreed benefit is lost.<\/p>\n

    Before signing, agree:<\/p>\n