Author Archives: Terry Beal

Options, Rights, and Renewals

Structuring a tenant’s Right of First Offer to lease additional space

If you have a right of first offer (″ROFO″) on certain space, then the landlord must offer to lease the ROFO space to you before it can be put ″on the market″ for lease. Most office leases structure ROFOs so that it is the landlord who … Continue reading

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Options, Rights, and Renewals

Right of First Refusal…a tenant’s checklist.

A right of first refusal (″ROFR″) gives you the right to lease additional space on the same terms as those contained in a bona fide offer the landlord is willing to accept from a 3rd party.  A ROFR, however, offers a growing tenant less certainty than a fixed … Continue reading

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Options, Rights, and Renewals

Negotiating Expansion Options for Maximum Flexibility

An expansion option is a tenant’s fixed right (but not obligation) to expand the Premises at a future date.  Anchor tenants and other large space users may negotiate a series of expansion options to accommodate planned growth over the term of a lease.   However, … Continue reading

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End of Lease TermOptions, Rights, and Renewals

The Option to Extend: Leverage in a Soft Market, Protection in a Tight Market

When market conditions are soft and favor tenants, an extension option in your lease establishes a baseline for renewal/renegotiation discussions with your landlord.  Additionally, a tenant-favorable provision can serve not only as a bargaining chip in negotiations with your current landlord, it can … Continue reading

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Commencement of Lease TermOptions, Rights, and Renewals

Pre-Move-in Expansion and Contraction Rights

Anchor tenants and other large office users will start the lease planning process well in advance of their lease expiration.  If they’re kicking off construction of a new building or will be taking space that’s currently occupied, they may be signing a lease … Continue reading

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Options, Rights, and Renewals

Negotiating a contraction option? Here are some details to consider.

A contraction option is a fixed right in your lease to reduce the size of your premises at some future date.  You can use it to downsize an office space prior to the lease’s scheduled expiration date. As you might expect, landlords (and their lenders) … Continue reading

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End of Lease TermOptions, Rights, and Renewals

Your termination option, how good is it?

An office lease is a long term commitment, but the real estate needs of your business are subject to change.  Armed with foresight and enjoying maximum leverage (because you were still talking with multiple landlords) you had your broker negotiate … Continue reading

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Pre-lease IssuesSuperior Interests

A watch-list, a special servicing event, and maximizing NPV recovery all have this in common.

Question: “What is a landlord with a troubled CMBS loan?” Back in the day, a landlord may have had a loan with a life insurance company in Iowa or a pension fund in California that retained the loan through maturity. … Continue reading

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