This office lease clause provides the tenant with a right of first refusal if additional space becomes available within the building.
The Texas Expansion Option Clause is a contractual provision that allows a tenant to expand or increase their leased space within a commercial property located in Texas. This clause provides tenants with the flexibility to accommodate their growing business needs without having to terminate their existing lease agreement or search for a new location. By including a Texas Expansion Option Clause in a lease agreement, tenants can secure the right to lease additional space that becomes available within the same property. This can be crucial for businesses that foresee rapid expansion or fluctuating space requirements in the future. It offers an opportunity for seamless growth and eliminates the need for unnecessary relocation costs or disruptions to ongoing operations. There are several types of Texas Expansion Option Clauses that tenants can consider: 1. Right of First Offer: This type of clause grants the tenant the first opportunity to lease any additional space that becomes available within the property before it is offered to other prospective tenants. The tenant can negotiate the terms and conditions for the additional space, including the rent, lease term, and other relevant factors. 2. Right of First Refusal: In this case, the tenant has the right to match or better any offers made by other potential tenants for the additional space. If the landlord receives an offer from a third party, they must first present it to the tenant, who then has the opportunity to secure the space by accepting the terms of the offer. 3. Right to Expand at Pre-Negotiated Terms: This type of expansion option clause allows the tenant to expand into predetermined additional space within the property at pre-negotiated terms. The parties agree on the terms, such as the rate of rent for the additional space, before signing the initial lease agreement. 4. Right to Expand at Fair Market Value: With this clause, the tenant has the right to lease any additional space within the property at a fair market value determined at the time of expansion. The fair market value is usually determined by considering factors such as current rental rates in the area, the condition of the space, and other relevant market conditions. It is essential for both tenants and landlords to consider these different types of Texas Expansion Option Clauses when negotiating a lease agreement. Each type offers varying levels of flexibility, obligations, and potential benefits. Tenants should assess their projected growth needs and select the type of expansion option clause that best aligns with their business objectives. When it comes to commercial real estate in Texas, the inclusion of an Expansion Option Clause provides a valuable solution for businesses seeking to grow and adapt within their leased property.
