This office lease clause provides the tenant with a right of first refusal if additional space becomes available within the building.
The King's New York Expansion Option Clause is a contractual provision that grants the tenant the right to expand their leased space in a commercial building located in New York. This clause aims to provide tenants with flexibility when their business grows or requires additional space in the future. The expansion option clause is beneficial for both the landlord and the tenant, as it allows the tenant to meet their increasing space needs without having to relocate, while securing an additional stream of rental income for the landlord. There are different types of Kings New York Expansion Option Clauses that can be incorporated into a lease agreement, depending on the specific requirements of both the tenant and the landlord. These types include: 1. Right of First Offer: This type of expansion option clause gives the tenant the first opportunity to lease any additional space that becomes available in the building before it is offered to other potential tenants. The tenant has the right to match the terms and conditions proposed by the landlord to secure the additional space. 2. Right of First Refusal: In this type of expansion option clause, the tenant has the right to lease any additional space that the landlord intends to make available in the building. The tenant can choose to accept or decline the offer made by the landlord, but if declined, the space can then be offered to other potential tenants. 3. Fixed Expansion Option: With this type of expansion option clause, the tenant has a predetermined right to expand their leased space by a specific amount or within a set time frame. The terms and conditions for the expansion, such as rental rate and construction costs, are typically prenegotiated and outlined in the lease agreement. 4. Step-Up Option: A step-up expansion option clause allows the tenant to expand their space gradually over a defined period. For example, the tenant may have the option to increase their square footage by a certain percentage each year for a specified number of years. It is important for tenants to thoroughly review and negotiate the expansion option clause before signing a lease agreement. Understanding the different types of expansion options available and considering the future growth potential of the business will help tenants make informed decisions and avoid potential space limitations in the long run.The King's New York Expansion Option Clause is a contractual provision that grants the tenant the right to expand their leased space in a commercial building located in New York. This clause aims to provide tenants with flexibility when their business grows or requires additional space in the future. The expansion option clause is beneficial for both the landlord and the tenant, as it allows the tenant to meet their increasing space needs without having to relocate, while securing an additional stream of rental income for the landlord. There are different types of Kings New York Expansion Option Clauses that can be incorporated into a lease agreement, depending on the specific requirements of both the tenant and the landlord. These types include: 1. Right of First Offer: This type of expansion option clause gives the tenant the first opportunity to lease any additional space that becomes available in the building before it is offered to other potential tenants. The tenant has the right to match the terms and conditions proposed by the landlord to secure the additional space. 2. Right of First Refusal: In this type of expansion option clause, the tenant has the right to lease any additional space that the landlord intends to make available in the building. The tenant can choose to accept or decline the offer made by the landlord, but if declined, the space can then be offered to other potential tenants. 3. Fixed Expansion Option: With this type of expansion option clause, the tenant has a predetermined right to expand their leased space by a specific amount or within a set time frame. The terms and conditions for the expansion, such as rental rate and construction costs, are typically prenegotiated and outlined in the lease agreement. 4. Step-Up Option: A step-up expansion option clause allows the tenant to expand their space gradually over a defined period. For example, the tenant may have the option to increase their square footage by a certain percentage each year for a specified number of years. It is important for tenants to thoroughly review and negotiate the expansion option clause before signing a lease agreement. Understanding the different types of expansion options available and considering the future growth potential of the business will help tenants make informed decisions and avoid potential space limitations in the long run.
