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To exercise an option to extend the lease term, that exercise must be completed within the specified time period, in the exact manner required, and include each and every term required for exercise, as specified in the Lease. If anything is done incorrectly, the attempted option exercise is not enforceable. Furthermore, if the option is exercised, rent will likely increase, and other lease terms will not be negotiable.

I strongly suggest that tenants (A) start comparing location, pricing and amenities of other office premises to your current premises at least one year before the end of the then current term, and (B) calendar both that 3-month lead time and the beginning and end dates for exercising the option(s).  That way, you can know your alternatives long before it is time to exercise the option.  That is when you go to the landlord to discuss the option and how much you are willing to pay.  With enough time to move to another location (if necessary), and the knowledge of other office space that you could rent at better rental rates, you will be better able to negotiate a mutually acceptable Lease with the landlord. Renewals without an option require much earlier engagement, since neither party is required to agree to any changes to the lease. Alternative premises need to be considered far in advance.

I provide option exercise and lease renewal services on an hourly basis only. If you have an upcoming option to extend your lease, contact me for a free 15-minute consultation to get started on the extension and negotiation process!

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