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 Houston, Texas Renewal Option Provision is a legal aspect commonly included in commercial lease agreements. This provision grants tenants the right to extend or renew their lease for an additional period of time, typically following the expiration of their initial lease term. The Renewal Option Provision provides businesses with the opportunity to continue operating in the same location, ensuring stability and avoiding the hassles of finding new premises. There are different types of Houston, Texas Renewal Option Provisions that may be utilized, including: 1. Fixed-Term Renewal Option: This type of provision allows the tenant to extend the lease for a predetermined fixed period, usually in increments of one to five years. The terms and conditions for renewal, such as rent increases, may be outlined in the original lease agreement or negotiated separately. 2. Percentage Rent Renewal Option: In some cases, commercial leases in Houston, Texas incorporate a percentage rent clause, where a portion of the tenant's revenue in addition to base rent is paid to the landlord. If such a provision exists, the Renewal Option may be structured in a way that alters the percentage rent calculation during the renewal period. 3. Negotiated Renewal Option: Some lease agreements in Houston may allow for negotiation of lease terms during the renewal process. This type of Renewal Option Provision grants tenants the opportunity to discuss and modify certain aspects of the lease, such as rent, maintenance responsibilities, or lease duration. 4. Automatic Renewal Option: Under this provision, the lease agreement stipulates that the lease will automatically renew for a predetermined period unless either party provides written notice to terminate or modify the agreement within a specified timeframe. This type of provision offers convenience and security for both tenants and landlords. When considering a lease agreement in Houston, Texas, it is important for tenants to carefully review the specific terms and conditions of the Renewal Option Provision. Understanding the various types of Renewal Options and their implications can help businesses make informed decisions and ensure continued success in their operations.
