This office lease clause provides the tenant with a right of first refusal if additional space becomes available within the building.
The North Dakota Expansion Option Clause is a provision included in a contract or lease agreement that grants the party initiating the clause the right to expand or extend the terms of the agreement to encompass additional properties or land in North Dakota. This clause provides flexibility for businesses or individuals to expand their operations or lease space in the state without needing to renegotiate the entire agreement. The North Dakota Expansion Option Clause is commonly utilized in commercial real estate leases, allowing tenants to secure the option to lease adjacent or nearby properties in the future. It provides tenants with the opportunity to expand their existing business premises, accommodate growth, or establish new branches in North Dakota without the need for new negotiations. This clause is especially valuable for businesses with long-term plans for expansion but may not be ready to commit to expanding at the time of initial contract signing. There are several types of North Dakota Expansion Option Clauses that can be tailored to suit the needs of the parties involved. 1. Simple Expansion Option Clause: This type of clause grants the tenant or lessee the right to expand their premises or lease additional properties within a specified time frame, usually stipulated in the original agreement. 2. Right of First Refusal Expansion Option Clause: This clause grants the tenant the first opportunity to lease any adjacent or nearby properties that become available for lease during the lease term. This means that if the landlord receives an offer from a third party to lease a neighboring property, the tenant with the Right of First Refusal has the option to match or exceed the offer and secure the additional space. 3. Fixed Price Expansion Option Clause: With this clause, the tenant and landlord agree on a predetermined price or rental rate for any additional space that may be leased in the future. This provides the tenant with certainty regarding the cost of expansion. 4. Conditional Expansion Option Clause: This type of clause applies specific conditions that need to be met for the expansion option to be exercised. For example, the clause may require the tenant to have operated in the existing premises for a minimum period before they can exercise the option to expand. In conclusion, the North Dakota Expansion Option Clause is a valuable provision that provides businesses and individuals with the flexibility to expand their operations or lease additional properties within North Dakota without the need for new negotiations. The various types of clauses available allow for customization based on the specific requirements of the parties involved, ensuring a fair and efficient expansion process.
