WHAT IS A RIGHT OF FIRST REFUSAL TO LEASE?
A Right of First Refusal to Lease is a lease clause that gives an existing tenant the first opportunity to lease additional space that is currently vacant or might become available to lease when another tenant vacates a space in the property. The First Right of Refusal to Lease is often required to be at the same price and economic terms and conditions as they are currently already paying, or based upon the terms the landlord believes they could successfully lease the vacant space at, or at a set price the owner has agreed to accept in the future.
This Right of First Refusal to Lease is often restricted to specific space in the building such as adjacent FREE EVALUATIONsuites or other suites on the same floor or in the same area of the building or shopping center.
For a tenant to exercise the option of the Right of First Refusal to Lease, the tenant must not currently be in default of their lease and have met other requirements such as a history of paying their rent on time, etc.