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.
The New Mexico Renewal Option Provision is a legal term referring to a clause within a contract that allows for the renewal or extension of the agreement. This provision is usually found in lease agreements, specifically in commercial real estate leases, and provides tenants with the option to extend their lease term beyond its original expiration date. The purpose of including a Renewal Option Provision is to provide flexibility and security to the tenant, ensuring they have the opportunity to continue occupying the space if desired. This provision can be beneficial for businesses that anticipate growth or do not want to go through the hassle of finding a new location. There are different types of New Mexico Renewal Option Provisions, each catering to the specific needs and circumstances of the parties involved. These include: 1. Fixed Option Period: This type of provision allows the tenant to renew the lease for a specific predetermined period stated in the original lease agreement. For example, the tenant may have the option to renew for an additional five years. 2. Rolling Option Period: In this case, the tenant has the right to renew the lease on a periodic basis, usually following the initial lease term. For instance, the tenant may have the option to renew the lease annually or every two years. 3. Increasing Rent Option: Some Renewal Option Provisions allow for an increase in rent upon renewal. This can be based on various factors, such as market rates or a pre-determined percentage increase. 4. Negotiated Renewal Provision: This type provides both parties with the opportunity to negotiate the terms of the renewed lease agreement. This allows for adjustments in rent, lease conditions, or any other relevant terms. 5. Notice Requirement: Most Renewal Option Provisions require the tenant to provide written notice within a specified timeframe, typically a few months prior to the expiration of the initial lease term. This notice ensures both parties have sufficient time to discuss and agree upon the terms of the renewal. In summary, the New Mexico Renewal Option Provision is a crucial element in commercial real estate leases that allows tenants to extend their lease beyond the original term. The provision offers flexibility and security, ensuring businesses can continue occupying their rented space without the need for relocation. With various types of Renewal Option Provisions available, tenants can choose the one that best suits their needs and circumstances.
