Hi guys,
I have a quick and basic question for you experienced commercial investors:
When looking at a lease with an option, say 3 years with a 2 x 3 year option, what does the option mean for the tenant? Is the tenant engaged in any way towards that additional 2 x 3 years period? Is it only a sign from the landlord that priority will be given to the existing tenant should they want to renew the lease?
Would appreciate your input on what the options really means in terms of commitment and basically wether having an option on the lease is a strong sign the tenant is likely to renew.
Thanks guys
Phiber
I have a quick and basic question for you experienced commercial investors:
When looking at a lease with an option, say 3 years with a 2 x 3 year option, what does the option mean for the tenant? Is the tenant engaged in any way towards that additional 2 x 3 years period? Is it only a sign from the landlord that priority will be given to the existing tenant should they want to renew the lease?
Would appreciate your input on what the options really means in terms of commitment and basically wether having an option on the lease is a strong sign the tenant is likely to renew.
Thanks guys
Phiber