Expansion Premises; Relocation Sample Clauses
The "Expansion Premises; Relocation" clause defines the terms under which a tenant may lease additional space (expansion premises) or relocate within a property during the lease term. Typically, this clause outlines the process for requesting extra space, the conditions under which the landlord must offer or the tenant may accept such space, and the procedures for moving to a different suite or area within the building. It may also address how rent, build-out costs, and other lease terms are adjusted in the event of expansion or relocation. The core function of this clause is to provide flexibility for tenants whose space needs may change over time, while also establishing clear procedures to minimize disruption and disputes for both parties.
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Expansion Premises; Relocation. To accommodate Tenant’s possible future expansion needs, Landlord agrees as follows. If after the 5th Lease Year Tenant informs Landlord that it desires to relocate into different premises that are at least 50% larger than the Premises, Landlord will use reasonable efforts to identify suitable expansion premises, if any, within Landlord’s existing portfolio of properties in the area. Should Landlord and Tenant enter into a new lease for the replacement premises, Landlord agrees to permit Tenant to terminate this Lease effective upon the date Tenant has occupied the replacement premises under the new lease with Landlord and commenced payment of minimum annual rental and operating expenses thereunder, subject, however to the following terms and conditions:
(1) Tenant shall not be in default of any material term or condition of this Lease nor shall any event have occurred that, with the giving of notice and/or the passage of time, would constitute such a default;
(2) the new lease must be for at least 27,387 rentable square feet and be binding upon Tenant (i.e. any contingencies or pre-rent commencement termination rights in favor of Tenant must have been waived or lapsed or tenant’s termination of its existing lease must be conditioned on the lapse or waiver of any such rights under the new lease);
(3) Landlord need not enter into a new lease with Tenant or permit such termination of this Lease unless Landlord is satisfied, in its reasonable discretion, with the creditworthiness of Tenant at that time, with due consideration of the increased obligations of Tenant under the contemplated new lease. Nothing herein shall be construed as a commitment or an obligation on the part of Landlord or Tenant to enter into such new lease, or as a commitment on the part of Landlord or Tenant as to the terms of such new lease. This Section shall apply only while Liberty Property Limited Partnership is the landlord under this Lease, and this Section shall terminate upon the sale or other disposition of Liberty’s interest in the Building. Without limiting the foregoing, the obligations under this Section shall not bind any present or future Mortgagee of the Property. Senior Vice President, Regional Director