More than ever, commercial tenants have the power to dictate their rental and terms - and almost every tenant would like their lease to include a clause giving it the option to renew.
It is in respect of the rental that many so-called renewal options fall flat
and reveal themselves not to be enforceable options at all. If you are banking
on a renewal option that is unenforceable, you may be stranded with a vacancy
or reduced rental in times where tenants hold the trump card.
The clause that comes the closest to satisfying the needs of both landlord and
tenant is a clause that contains a binding option to renew, but at a
market-related rental to be determined by an independent industry expert.
To find out more, read the full Commercial
LeasePack Article June 2021 here
Updates
Two new
documents have been added to the Commercial LeasePack: the CPA version of the
Industrial and Retail Lease Agreements.
In the existing Lease Agreements and Mandates, new definitions have been added
for Constitution, Data Protection Legislation, ECTA, PAIA, POPIA, Processing
and Sign where applicable, with two new clauses added together with amendments
to the Schedule for standardisation purposes.
To view a full list of revisions, click here
To download the
updated Commercial LeasePack, click here
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