I've been noticing in a lot of new office lease agreements that property owners are including a clause that grants them the ability to pay a tenant in cash for the value of the rent abatement stipulated in the lease agreement. I understand the reasoning - value increase of the NOI from that cash flow is greater than the sum of the cash flow itself, so the property owner can avoid any buyer trying to negotiate a discount/credit on sale. I've never actually seen this in practice, though - Anybody have experience with the property owner actually paying the tenant cash for the rent abatement value?
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