Option to Extend Lease Term Clause Samples
The "Option to Extend Lease Term" clause grants the tenant the right to prolong the duration of their lease beyond the original end date, typically under specified conditions. This clause usually outlines the process for exercising the extension, such as providing written notice within a certain timeframe, and may set forth the terms for the extended period, including any changes to rent or other obligations. Its core practical function is to provide tenants with flexibility and security in their occupancy, while giving both parties clarity on how a lease extension can be implemented.
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Option to Extend Lease Term. Landlord hereby grants to Tenant an option to extend the Lease Term for either a) a one (1) year period; b) a two (2) year period; or c) a three (3) year period (“Option Period”), on the following terms and conditions:
A. Tenant must give Landlord notice in writing of its exercise of the option in question, and the length of the Option Period, no earlier than 270 days before the date the Lease Term would end, but for the exercise of the said option, and no later than 180 days before the date the Lease Term would end, but for the exercise of the said option.
B. Tenant may not extend the Lease Term pursuant to any option granted by this paragraph if Tenant is in Default beyond any applicable notice and cure period as of the date of exercise of the option, or as of the date this Lease would have been terminated but for said exercise.
C. All terms, covenants and conditions of this Lease shall apply during the option period, except that the Base Monthly Rent for the Option Period shall be determined as provided in section D below.
D. The Base Monthly Rent for the Option Period shall be the greater of: (i) the Base Monthly Rent payable for the last month of the Premises Lease Term, or (ii) ninety-five (95%) percent of the then fair market monthly rent determined as of the commencement of the Option Period, based upon a lease for premises of like size, quality and location in the Menlo Park area. If the parties are unable to agree upon the fair market monthly rent for the Premises for the Option Period within 30 days from Tenant’s delivery of notice of exercise of the option, then the fair market monthly rent shall be determined by appraisal conducted pursuant to subsection E of this paragraph.
E. In the event it becomes necessary to determine by appraisal the fair market rent of the Premises for the purpose of establishing the Base Monthly Rent during the Option Period, then such fair market monthly rent shall be determined by three real estate appraisers, all of whom shall be members of the American Institute of Real Estate Appraisers, with not less than five years’ experience appraising real property (other than residential or agricultural property) located in San Mateo County, California, in accordance with the following procedures:
(i) The party demanding an appraisal (the “Notifying Party”) shall notify the other party (the “Non-Notifying Party”) thereof by delivering a written demand for appraisal, which demand, to be effective, must give the name, address...
Option to Extend Lease Term. (a) If Tenant is not in default under this Lease at the time of the exercise of this option or at the commencement of the extended Lease Term, Tenant may extend the initial Lease Term for 2 extension terms of 5 years each commencing on the next day after the initial Expiration Date as to the first renewal term and on the next day after the expiration of the first renewal term as to the second renewal term by giving Landlord an extension notice at least 12 months, but not more than 15 months, prior to the (i) initial Expiration Date as to the first renewal option, and (ii) the expiration of the first renewal term as to the second renewal option. If Tenant timely gives a valid extension notice, the Lease Term is extended for 5 years upon the same terms as in the Lease, except that the Rent and other applicable terms adjust based on the Market Rate (defined below) and Tenant has no further option to extend the Lease Term after these option's are exercised.
(b) Within 30 days after Landlord receives Tenant's extension notice, Landlord shall deliver a notice to Tenant specifying the Market Rate. If Tenant does not approve Landlord's designation of Market Rate, then Tenant, as its sole remedy, may revoke its exercise notice by delivering a revocation notice to Landlord within 30 days after Tenant's receipt of Landlord's notice specifying the Market Rate, but otherwise Tenant may not revoke its extension notice. If Tenant gives a revocation notice, the Lease Term ends on the initial Expiration Date as to the first renewal option or the expiration of the first renewal term as to the second renewal option and Tenant has no further rights under this Paragraph.
Option to Extend Lease Term. Landlord and Tenant acknowledge and agree that Tenant shall continue to have one (1) option to extend the Lease Term for a period of five (5) years in accordance with, and pursuant to the terms of, Section 2.2 of the Office Lease.
Option to Extend Lease Term. A. COUNTY shall have the Option to Extend Lease Term as to the Premises or any portion thereof for the number of option terms (“Option Terms”) and the period of time during each option term set forth in the Basic Lease Provisions on the same terms and conditions as the Lease, except the Monthly Rent for the Premises. The Option Terms must be exercised, if at all consecutively; however, COUNTY may opt to exercise one or multiple Option Terms at once. To exercise Option Terms, COUNTY shall provide LANDLORD with written notice at any time on or prior to the date that is 180 days before the expiration or earlier termination of the then current Lease Term or during any Holdover Period (as later defined).
B. The Monthly Rent for the Premises during each Option Term shall be adjusted by good faith negotiation of the Parties to the fair market monthly rental rate then prevailing based on the monthly rental rent (“FMV Rent”) of comparable leased premises in the County of San Bernardino. If the Parties have been unable to agree on the FMV Rent for the Premises within five (5) months of COUNTY's exercise of its option, said FMV Rent shall be determined through arbitration conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association. During the period between the expiration of the then current Lease Term and the determination of the Monthly Rent for the Premises by arbitration, COUNTY shall continue to pay the Monthly Rent for the Premises in the amount due for the month immediately preceding expiration of the then current Lease Term. If the FMV Rent for the Premises is determined by arbitration and COUNTY does not, for any reason, agree with such determination, COUNTY shall have the right to terminate the Lease by providing LANDLORD with written notice not later than thirty (30) days after COUNTY’s receipt of the arbitration- determined FMV Rent. In the event COUNTY does not so terminate the Lease, COUNTY shall commence paying the arbitration-determined FMV Rent for the month immediately following COUNTY’s receipt of said rate determination and for the duration of the subject Option Term.
Option to Extend Lease Term. Provided Tenant is not in default of any material term, covenant or condition of this Lease after the expiration of any applicable notice and/or cure period, Tenant shall have the option to extend the Initial Term of this Lease for one (1) additional period of five (5) years (the “Renewal Term”) to commence immediately upon the expiration of the Initial Term.
Option to Extend Lease Term. (a) Tenant is granted an option (the “Extension Option”) to extend the Lease Term for five (5) years, to and including February 28, 2026. The period of time shall be referred to herein as the “Option Period”. To exercise the Extension Option, Tenant must give Landlord unequivocal written notice of Tenant’s election to exercise the Extension Option at least ten (10) calendar months (but not earlier than twelve (12) calendar months) prior to the Expiration Date.
(b) If Tenant elects to exercise the Extension Option, the Rent for the Option Term (“New Rent”) shall be the Fair Market Rent (as defined below) for comparable space in the Bank of America Building (“Comparable Space”), but in no event shall the New Rent be less than the Rent payable during the last month of the Lease Term. If there is no Comparable Space in the Bank of America Building at the time, Tenant shall pay, as New Rent, whatever the fair market rent in the Bank of America Building would be if there was such Comparable Space in the Bank of America Building. The term “Fair Market Rent” shall mean the rent that would be paid by a willing tenant renewing its lease for Comparable Space for a term of five (5) years. Tenant concessions shall be included in the determination of fair market rent with respect to tenants who are renewing their leases in the Bank of America Building. The term “tenant concessions” shall include, without limitation, such inducements as tenant improvements and free rent.
Option to Extend Lease Term. Tenant shall have the option to extend the initial term of this Lease with respect to any of the Premises that Tenant may elect to continue to lease from Landlord for three (3) additional, successive periods of five (5) years each (each, an “Extension Period”) on the same terms, covenants and conditions of this Lease. In the event Tenant elects to exercise the option(s), Tenant shall provide Landlord written notice of Tenant’s exercise of the option(s) not less than ninety (90) days prior to the end of the then-current term, such notice shall identify each of the Premises which Tenant has elected to remain subject to this Lease during the applicable Extension Period and is to be given in the manner provided in Section 25.04 of this Lease. Provided that Tenant has duly exercised its option to extend the term of this Lease as set forth herein and further provided that Tenant is not in default under this Lease at the end of the then current term of this Lease, this Lease shall be amended to reflect the exclusion of any of the Premises from the Lease and the corresponding reduction in the Annual Rent in connection with Tenant’s exercise of the applicable extension option. Tenant’s right to exercise the foregoing option(s) is conditioned upon Tenant’s performance of all of the duties and obligations on its part to be performed under this Lease so that, at the time of the exercise of such options, Tenant shall not be in default hereunder. In the event that Tenant elects to extend the initial term of this Lease, the Annual Rent shall continue to be adjusted as provided in Section 6.02 of this Lease.
Option to Extend Lease Term. Lessee is hereby granted and shall, if not then in default under this Lease, have an option to extend the term of this Lease for an additional twelve (12) months (the "Extended Term") on the same terms, covenants, and conditions contained in this Lease, except that the rent to be paid by Lessee to Lessor shall be as identified in paragraph 3.2.
(a) This option shall be exercised only by Lessee delivering to Lessor no less than ninety (90) days before expiration of the Term of this Lease written notice of Lessee's election to exercise the option to extend the Term of this Lease as provided in this section. This written notice shall be deemed effective on personal delivery to Lessor.
Option to Extend Lease Term. Landlord hereby grants to Tenant one option to extend the Lease Term of the ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ Lease for a five (5) year term commencing when the prior term expires, under the following terms and conditions:
Option to Extend Lease Term. A) Tenant may, at Tenant’s option, extend the Initial Term of this Lease for one (1) additional period of three (3) years (the “Renewal Term”), subject to all the provisions of this Lease. The Renewal Term shall commence at the expiration of the Initial Term, and shall terminate on the third (3rd) anniversary of the date of commencement of the Renewal Term, unless sooner terminated as provided herein.
B) Failure to duly exercise the option for the Renewal Term shall nullify the option.
C) Tenant’s right to the option to extend the Lease Term and Tenant’s rights to the Renewal Term are subject to:
(1) This Lease being in full force and effect on the last day of the Initial Term.
(2) Compliance with the following procedure for exercising the option in question:
(a) At least nine (9) months before the last day of the Initial Term, Tenant shall give Landlord written notice exercising the option.
(b) Each party shall, at the request of the other, execute a memorandum acknowledging the fact that the option in question has been exercised. If the option is properly exercised by Tenant, the failure of Landlord to execute such memorandum shall not invalidate such option or the exercise thereof.
(3) Tenant is not in default at time of the exercise of the renewal and at the commencement of the renewal term.