This office lease clause provides the tenant with two consecutive renewal options each consisting of five years, under the same terms and conditions as those set forth in the lease for the initial term, except that Base Rent for the renewal terms differ.
Arizona Renewal Option Provision is a legal provision that allows tenants and landlords to extend a lease agreement for an additional period upon its expiration. This provision is commonly found in commercial lease agreements and provides flexibility for both parties involved. Under this provision, the tenant has the option to renew the lease for a specific duration, usually set out in the original lease agreement. The Arizona Renewal Option Provision serves as a safeguard for tenants who wish to continue occupying the leased space without the need to negotiate a new lease agreement. Additionally, it benefits landlords by ensuring a stable source of rental income for an extended period. This provision can significantly reduce the hassle of finding new tenants or dealing with vacancies, especially in highly desirable or well-located properties. There are two main types of Arizona Renewal Option Provisions: automatic renewal and conditional renewal. 1. Automatic Renewal: In this type, the lease agreement states that the lease will be automatically renewed at the end of the initial term unless the tenant provides written notice of termination within a certain period, typically specified in the agreement. This type of provision assumes the tenant wants to continue the lease and places the burden on them to notify the landlord if they wish to terminate the agreement. 2. Conditional Renewal: Conditional renewal provisions require both parties to negotiate and agree upon new lease terms and conditions before the extension takes effect. The tenant must express their intent to exercise the renewal option within a specific timeframe, usually outlined in the original lease agreement. Once the tenant expresses their intent, negotiations between the tenant and landlord regarding rental rates, lease duration, and other terms commence. This type of provision allows for potential adjustments to the lease terms to better align with market conditions or changes in the business needs of both parties. Both types of Arizona Renewal Option Provisions offer advantages and potential challenges for tenants and landlords. Tenants may benefit from automatic renewal by avoiding the risk of losing their space if they forget to give notice, while conditional renewal allows for potential adjustments to better suit their changing requirements. Landlords can enjoy the stability of automatic renewal, knowing their property will continue to generate income, or negotiate new terms under conditional renewal to reflect market conditions. Overall, the Arizona Renewal Option Provision is a valuable tool in lease agreements that provides flexibility for tenants and landlords, ensuring continuity and stability in their commercial real estate arrangements.
