This office lease clause provides the tenant with a right of first refusal if additional space becomes available within the building.
The Hawaii Expansion Option Clause refers to a contractual provision that provides the lessee (tenant) with the right to expand their leased premises in Hawaii, during the term of their lease agreement. This clause enables tenants to add more space to their existing rented property if needed, without the hassle of relocating or negotiating a new lease entirely. The Hawaii Expansion Option Clause offers flexibility to businesses, allowing them to adjust their space as their operations grow or change. This option can be especially beneficial for companies that anticipate future expansion or foresee potential changes in their business demands. Different types of the Hawaii Expansion Option Clause may include: 1. Fixed Expansion Option: This clause specifies predetermined terms and conditions for the expansion, such as the reserved area, rental rate, and timing. The tenant has the right to expand their leased premises within the agreed-upon terms. 2. Right of First Offer (ROFL): Under this clause, the landlord agrees to first offer any adjacent or available property to the tenant before offering it to others. The tenant can then decide whether they want to expand into the new space, subject to negotiations. 3. Right of First Refusal (ROAR): This clause grants the tenant the right to match or better any proposed offers by third parties for adjacent or available space. If the landlord receives an offer from another party, the tenant has the opportunity to secure the space by matching or exceeding the offered terms. 4. Right to Expand at Market Rate: This clause allows the tenant to expand their premises, subject to negotiation of market rental rates. The landlord and tenant mutually agree upon the terms, including the size, duration, and rental rate for the expanded space. 5. Gradual Expansion Clause: This clause allows the tenant to expand their leased premises incrementally over time. It enables businesses to handle expansion more gradually, aligning with their financial and operational growth. In summary, the Hawaii Expansion Option Clause is a useful provision in lease agreements, providing businesses the opportunity to expand their rented premises as their needs evolve. The various types of expansion options allow flexibility in negotiations, ensuring a win-win situation for both tenants and landlords.
