{"id":1004079574,"date":"2013-07-03T10:36:56","date_gmt":"2013-07-03T18:36:56","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004079574"},"modified":"2022-12-06T17:41:47","modified_gmt":"2022-12-07T01:41:47","slug":"option-to-renew","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/option-to-renew\/","title":{"rendered":"Option to Renew"},"content":{"rendered":"<p><em>By Randolph T. Mason, CCIM, SIOR,\u00a0<em>Partner, Commercial Realty Specialists\u00a0<\/em><\/em><\/p>\n<p><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/07\/Randy_Mason_480x270.jpg\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004043198\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/option-to-renew\/randy_mason_480x270\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/07\/Randy_Mason_480x270.jpg\" data-orig-size=\"480,270\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;}\" data-image-title=\"Randy_Mason_480x270\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/07\/Randy_Mason_480x270.jpg?w=480\" class=\"alignleft size-thumbnail wp-image-1004043198\" alt=\"Randy_Mason_480x270\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/07\/Randy_Mason_480x270.jpg\" width=\"150\" height=\"150\" \/><\/a>It is not uncommon for commercial tenants to routinely request one or more options to extend their lease term so that they can be sure that they can occupy the space that they spend so much time and energy moving into. There are also benefits for landlords when a tenant renews, as their releasing expenses are far less expensive to keep existing tenants, the landlord does not have any down time, limited tenant improvement dollars and generally lower brokerage commissions.<\/p>\n<p>Should the landlord and tenant want to decide on the renewal rental amount in the future, it is important to have an apparent way to calculate the renewal rent. Options have been found <a href=\"https:\/\/en.wikipedia.org\/wiki\/Unenforceable\">unenforceable<\/a> because there was no standard specific measurement in the lease on how to determine what the future rent would be.<br \/>\nIt makes a lot of sense for both the tenant and the landlord to have option language that requires the tenant to provide notice to the landlord many months before the lease expires. In the event the option rent cannot be agreed upon, the tenant would have ample time to relocate, and the landlord will have ample time to market the property.<br \/>\nThere should be an obvious way to determine the future <a href=\"https:\/\/www.mncar.org\/resource\/industry-terms.html\">fair market rent<\/a>, be it being determined by arbitration or appraisal, or by a reference to similar properties in the area. It should not be left to a mutually agreed upon number, as that could be a recipe for litigation should a number not be \u201cmutually agreed upon.\u201d<br \/>\nWhen written correctly, an option to renew can benefit both the tenant and landlord.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Randolph T. Mason, CCIM, SIOR, Partner, Commercial Realty Specialists: It is not uncommon for commercial tenants to routinely request one or more options to extend their lease term in order to ensure they can remain in the space after spending so much time and energy moving into it.<\/p>\n","protected":false},"author":1223,"featured_media":1004043198,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37301],"tags":[],"class_list":["post-1004079574","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Option to Renew - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/option-to-renew\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Option to Renew\" \/>\n<meta property=\"og:description\" content=\"By Randolph T. 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