When dealing with office space leases there are several
clauses you need to pay keen attention to as a tenant apart from making sure
that you read the entire document. One such clause that most business people
ignore is the lease option clause that you need to scrutinize carefully before
you sign a commercial office space lease. This particular clause has details
regarding when, and if, you are able to make a lease renewal when the time
comes. It doesn’t matter that you don’t have current plans to renew this
particular lease when it expires, it is always critical that you ask for the
inclusion of this clause if it isn’t there already.
There are several good reasons why you as a tenant should
always make sure that this clause is included in your commercial lease. The
first one is the fact that the renewal option gives you a clear plan in future
just in case you decide to retain the current office space and renew your lease
one more time. This provides you with a guarantee that you won’t have to pack
up and go even in the case that you are not yet ready simply because your lease
has expired.
The best time for you as a business person to exercise the
commercial real estate lease renewal option is determined by the way your
current lease is drafted. This option should highlight the time you are able to
exercise the lease option so that it can remain valid. The main determinants
are the state of your lease and what the normal notice for commercial tenants
that wish to exercise the option with the landlord is. You want to make sure
that you clearly understand the time period that is stated within the lease so
that you don’t fail to exercises the option within the required time. Having
and making use of the commercial office space lease option is a smart way to
make sure that the current lease doesn’t lock out your chances of renewing the
lease in agreeable terms.
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