Why a Renewal Option is no longer viable for Commercial Landlords

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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