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.
Illinois Renewal Option Provision is a legal clause included in commercial lease agreements in the state of Illinois. This provision grants tenants the option to renew their lease for an additional term or terms, subject to certain conditions and requirements. The Illinois Renewal Option Provision is designed to provide tenants with the opportunity to extend their lease agreement beyond its initial expiration date, without the need for renegotiating or entering into a new lease. This can be particularly advantageous for businesses who want to maintain a long-term presence in a specific location, as it provides stability and continuity. There are different types of Illinois Renewal Option Provisions that can be included in lease agreements. Some common variations include: 1. Fixed-Term Renewal Option: This type of provision allows the tenant to renew the lease for a set period of time, such as one year or multiple years. The renewal term is predetermined and agreed upon by both parties at the time of signing the original lease. 2. Rolling Renewal Option: In this type of provision, the lease is automatically renewed for a specified period, often on a month-to-month basis, unless either party provides notice to terminate the lease within a specific timeframe. This provides flexibility for both the tenant and the landlord. 3. Conditional Renewal Option: This type of provision requires the tenant to meet certain conditions in order to exercise the renewal option. For example, the tenant may need to maintain a certain occupancy rate or meet certain financial benchmarks to be eligible for renewal. 4. Market-Rate Renewal Option: With this provision, the rent for the renewal period is determined based on the prevailing market rates at the time of renewal. This ensures that the lease remains in line with current market conditions. The inclusion of an Illinois Renewal Option Provision can provide benefits for both tenants and landlords. Tenants have the opportunity to secure their space for an extended period, while landlords can maintain a consistent stream of rental income and avoid vacancies. It is important for both tenants and landlords to carefully review and negotiate the terms of the Illinois Renewal Option Provision to ensure that it aligns with their respective needs and interests. Consulting with a legal professional is advisable to ensure compliance with all applicable laws and to draft a comprehensive lease agreement that includes an appropriate renewal option provision.
