This office lease clause provides the tenant with a right of first refusal if additional space becomes available within the building.
The North Carolina Expansion Option Clause is a legal provision that allows a tenant to expand their leased premises within a commercial property located in the state of North Carolina. This clause grants tenants the option to lease additional space adjacent to their existing premises, thereby providing them with the flexibility to accommodate their growing business needs. The North Carolina Expansion Option Clause enables tenants to secure future expansion rights at prenegotiated terms and conditions. This clause is especially beneficial for businesses that anticipate growth over the course of their lease term, as it eliminates the need to relocate to a larger space and incurs the associated costs and disruptions. By including this clause in the initial lease agreement, tenants have the advantage of securing additional space in the same building or complex, allowing them to retain their established location and address. There are different types of North Carolina Expansion Option Clauses that tenants can consider including in their lease agreements, depending on their specific needs and circumstances. Some common types include: 1. Right of First Offer (ROFL): This type of expansion option clause grants the tenant the right to be the first party the landlord approaches if additional space becomes available for lease within the building or complex. The tenant has the option to either accept or decline the offer to lease the available space before it is offered to any other potential tenants. 2. Right of First Refusal (ROAR): Similar to the ROFL, the ROAR clause gives the tenant the right to match or exceed an offer made by another tenant for the available additional space within the property. If the landlord receives an offer from another party, the tenant with the ROAR clause has the first opportunity to lease the space on the same terms. 3. Fixed Expansion Option: The fixed expansion option allows tenants to secure specific additional space within the property at predetermined terms and conditions. This type of clause is useful when tenants have a clear understanding of their future space requirements and need to ensure the availability of adjacent premises. 4. Contingent Expansion Option: In circumstances where tenants are uncertain about their future expansion needs, a contingent expansion option clause can be used. This clause allows tenants to negotiate expansion terms and conditions only if certain predetermined criteria are met, such as reaching a specified revenue target or surpassing a specific employee count. In summary, the North Carolina Expansion Option Clause offers tenants the opportunity to grow and expand within their existing leased commercial premises. By including specific types of expansion option clauses in their lease agreements, tenants can secure their expansion rights at favorable terms, ensuring their businesses can scale and thrive while maintaining a preferred location.
