This office lease clause provides the tenant with a right of first refusal if additional space becomes available within the building.
The Michigan Expansion Option Clause is a legal provision that grants a tenant the right to expand the leased premises within a shared building or property in the state of Michigan. This clause allows the tenant to exercise their option to increase the square footage of their leased space at a later date, providing flexibility to accommodate growth or changing business needs. The Michigan Expansion Option Clause typically outlines specific terms and conditions under which the expansion can occur. It typically defines the timeline for exercising the expansion option, the additional space available for lease, and the rental rate or cost associated with the expanded area. The clause may also specify any limitations or restrictions on the expansion, such as minimum lease term requirements or restrictions on the type of use allowed in the expanded area. There are different types of Michigan Expansion Option Clauses, each tailored to the specific needs and preferences of the landlord and tenant. Some common variations include: 1. Fixed Expansion Option Clause: This type of clause allows the tenant to expand their leased space by a predetermined amount or within a specific area of the property. The landlord and tenant agree on the terms upfront, including the size, location, and rent for the additional space. 2. Right of First Refusal Expansion Option Clause: In this type of clause, the tenant has the first right to lease any available space that becomes vacant within the same property or building. If another tenant moves out or terminates their lease, the tenant with the right of first refusal can choose to expand into that space before it becomes available to other potential tenants. 3. Step-Up Expansion Option Clause: This clause allows the tenant to gradually increase their leased space over a predefined period. For example, the tenant may have the option to expand by a certain percentage each year, allowing their space to grow gradually in proportion to their business growth. 4. Conditional Expansion Option Clause: This type of clause is often used when the tenant's expansion is subject to certain conditions or triggers, such as reaching a specific revenue threshold or meeting certain performance metrics. Once the conditions are met, the tenant can exercise their option to expand. Regardless of the specific type of Michigan Expansion Option Clause, it is crucial for both parties involved to clearly outline their rights and responsibilities in a written lease agreement. This provides protection and clarity for both the tenant and landlord, ensuring a smooth expansion process while minimizing any potential misunderstandings or disputes.
