Expansion Options Clauses
(Pro-Landlord)

Summary

These expansion options clauses may be included in an office lease to provide the tenant with options to expand the leased premises, such as the fixed option, the right of first offer, and the right of first refusal. These clauses are drafted from a perspective that is favorable to the landlord and include practical guidance and drafting notes. The most common type of expansion option is a right of first offer, whereby the landlord is required to offer specified space to a tenant before offering the same space to a third party. Another type of expansion option is a fixed option under which tenant has the option to add specified space at a designated date in the future on specified terms. Finally, the last type of expansion option is a right of first refusal, under which tenant has the option to lease specified space after landlord has made a bona fide offer to lease the space, and which offer must have been accepted by a third party. The drafting notes include tips for negotiating on behalf of tenant. The capitalized terms used in these sample clauses should be conformed to the defined terms in the relevant office lease. For a full listing of key content covering mechanic's liens, see . For a full listing of key content covering real estate transactions for in-house attorneys, see In-House Real Estate Resource Kit. For a full listing of key content covering retail leasing, see Retail Leasing Resource Kit. For more on office leases, see Office Lease Agreements. For a template office lease, see Office Lease (Short Form) (Pro-Landlord).