As a commercial landlord or tenant it is important to consider including an option term to a lease.
A lease will detail the period for which a tenant may occupy a premises and this may include an option to renew. This will allow a tenant to renew their tenancy for a predetermined period which is negotiated before entering into a lease.
Benefits of an option term
An option term is available at the discretion of the tenant, which provides businesses with flexibility of terms and security of tenure. A landlord must renew a lease if a tenant has validly exercised an option to renew and once exercised the terms binding to both parties.
How it works
In most instances the commencing rental should be determined through the analysis of recent comparable data and once agreed, lease renewal documents will be prepared for signing by both parties.
Should you have any questions in regards to commercial real estate matters feel free to contact myself or a member of our commercial team at Miles Real Estate.
Damian Wilson - Commercial Manager
