An option to renew, also known as an 'option', is a
clause within a commercial lease which allows the tenant a further
fixed term or terms after the expiry of the existing lease.
The major benefit of including one, or multiple, option terms in
a commercial lease, for both landlords and tenants, is the
certainty and security that it provides.
This is because so long as the option is validly exercised in
accordance with the terms of the lease, a further lease will be
granted for the time period stated in the lease.
The option lease will be on the same terms as the existing
lease, except for the following which will be amended in accordance
with the clauses of the existing lease:
