Do Tenants in Breach Get Discount on Damages if Replacement Tenant Pays Higher Rent?

SITUATION: With 24 months remaining on its lease, a tenant vacates the premises and stops paying its $10,000 per month rent. After six months of marketing and sales efforts, the landlord finds a replacement tenant willing to pay $15,000 per month. The replacement tenant also pays the landlord a $200,000 allowance to make improvements to the property. Six months later, the new tenant moves in and begins paying rent. Meanwhile, the landlord sues the original tenant for the unpaid rent left on the lease.

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