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Clauses resulting in Additional Space Leased

Category:
Leases - Contracts
State:
Multi-State
Control #:
US-CL-505-1
Format:
Word; 
Rich Text
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Description

Examples of clauses that may result in Additional Leased Space for Tenant. This clause gives the Tenant the right to lease additional space.
Clauses resulting in Additional Space Leased are provisions that are included in a lease agreement that allows the tenant to lease extra space beyond the agreed upon initial term. These clauses can vary depending on the terms of the lease, but usually involve a written agreement that outlines the additional space, the additional rent and other terms that must be met in order to secure the additional space. Common types of Clauses resulting in Additional Space Leased include Expansion/Relocation Clauses, Option Clauses, and Renewal Clauses. Expansion/Relocation Clauses allow the tenant to expand or relocate their leased premises without re-negotiating the lease agreement. Option Clauses allow the tenant the option to expand their leased premises at the end of the lease term. Renewal Clauses allow the tenant to renew their lease for an additional term, with the possibility of expanding their leased premises.

Clauses resulting in Additional Space Leased are provisions that are included in a lease agreement that allows the tenant to lease extra space beyond the agreed upon initial term. These clauses can vary depending on the terms of the lease, but usually involve a written agreement that outlines the additional space, the additional rent and other terms that must be met in order to secure the additional space. Common types of Clauses resulting in Additional Space Leased include Expansion/Relocation Clauses, Option Clauses, and Renewal Clauses. Expansion/Relocation Clauses allow the tenant to expand or relocate their leased premises without re-negotiating the lease agreement. Option Clauses allow the tenant the option to expand their leased premises at the end of the lease term. Renewal Clauses allow the tenant to renew their lease for an additional term, with the possibility of expanding their leased premises.

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FAQ

Escalation clauses can be beneficial, especially in a seller's market. If homes are selling fast, you'll want something that can help your offer stand out in a competitive market and let sellers know you mean business. Therefore, the best time to use an escalation clause would be during a bidding war scenario.

An escalator clause (also known as an escalation clause or a laddering clause) is a clause or provision in a lease or contract that allows pricing or wages to be adjusted to account for changing market conditions, such as inflation or tax fluctuations.

Lease rate escalations are common clauses built into commercial leases allowing for automatic periodic increases on a tenant's rent. This clause has been known by many names: an escalation clause, an annual increase clause, an annual rent increase, or an annual rent bump.

In terms of commercial real estate, expansion options provide tenants with the choice to add more space to their rented premises. Typically, this would apply to an office space or retail location where the tenants seek to expand into an adjoining space.

For example, if a lease agreement has an escalation clause based on the CPI, the rent for the property will be adjusted annually based on the change in the CPI. For example, if the CPI increases by 3% over a year, the rent will also increase by 3%.

Expansion rights allow a tenant to elect to expand beyond the fixed area of the leased premises to other specified areas under the landlord's control. The provision usually specifies: The description and location of the expansion space.

Tenant shall pay to Landlord, as Additional Rent, an amount equal to Tenant's Proportionate Share of (i)Taxes (as such term is hereinafter defined) payable by Landlord during the Term, plus (it) Operating Expenses (as such term is hereinafter defined) payable by Landlord during the Term.

For instance, if a buyer makes an offer of $400,000, an escalator clause could specify that if a higher offer comes in, the buyer will beat it by $3,000, but only up to $430,000. This would mean that if an offer of $405,000 is tabled, the escalator clause would trigger a new offer of $408,000.

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More info

Expansion clauses are terms negotiated within your lease that outline your ability to expand within the property should space become available. Expansion of Premises.This clause states that if one portion of the lease is ruled invalid in court, the rest of the lease is still upheld. An expansion clause is the right or option to lease a specific additional space in the demised premises for a defined term in the future. This commercial lease clause identifies the space the tenant will occupy. This might be straightforward if the lease is for an entire building or property. ABC Tenant executes a lease for 5,000 sq. ft. Of space at Realogic Tower. A must take clause is an expansion clause where the tenant agrees to lease an entire space prior to the actual time they will need it. Pass-through clauses are lease additions and amendments that ensure the costs of energy efficiency are passed through to the tenant instead of the landlord.

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