Commercial landlords, give a tenant the option to lease additional space with this Right of First Refusal template, which forms an Exhibit to the original Lease.
- If the landlord receives a third party offer to lease the space, the tenant will have a right of first refusal to lease the space, provided that the tenant is not in default under the terms of the original Lease.
- If the right of first refusal is exercised within the first 12 months of the original Lease, the Lease terms will apply. If exercised after the first year of the original Lease, the terms set forth in the third party offer will apply.
- If the tenant fails to exercise its right of first refusal or waives the right, then the right of first refusal will lapse in favor of the third party option.
- The right of first refusal cannot be transferred or assigned except to an assignee who is assuming all of the tenant's interest in and obligations under the original Lease.
- The Right of First Refusal to Lease Additional Space template is available as a downloadable and fully editable MS Word document.
Last Updated: 28-April-2021