Lease Renewal – who do I talk to about getting a better deal ?

Us. You talk to us about lease renewal and lease reset.

Doing better than the deal you have is called a lease reset. Tenants can need a lease reset at any time and for any reason. Resetting a lease is negotiation at its purest. To access a lease reset instead of a lease renewal, a tenant needs to act early with clarity of purpose.

Lease renewals

Your lease is ending. What’s the plan ? Do you have a option to renew ? Should you exercise it ? What are your alternatives to a lease renewal ?

How do I know if I have an option to renew ?

The lease will say so. Look at the front pages, do you see the words “With an option to renew for a period of…” ? Look closely. What does it say ? Reference to options are repeated throughout most leases. If you are a retail tenant, the option details will also be set out in the disclosure statement.

Should I exercise the option ?

Exercising an option means you will get a new lease along the lines of what you have already agreed, but you will not do better. That is a lease renewal.

As an alternative to a lease renewal, some tenants have the opportunity to reset their lease and get a better deal. That is, if they are alert and use the time available to them. Depending on the business, 2 to 3 years away from lease expiry is a good time to start planning key conversations. The next best time is now.

Information on this website is not legal advice.

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