This applies to Retail Leases and commercial property leases.
Things to be aware of on the exercise of an option:
- Check the Lease, both as a landlord and tenant, to ensure you
are aware of any specific rights or obligations that come with the
exercise of the option.
- Make sure the option is exercised properly;
- Make sure the option is exercised within the correct
timeframe;
Most businesses occupy premises which they lease from another
party. Generally there is a good working relationship between the
Landlord and the Tenant and correspondence is informal.
Quite often the value of the business is associated with its
location. The value of the premises to the Landlord may in part be
related to having a high quality tenant but may also be related
just to the high quality of the location of the premises.
