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Options to renew in a commercial lease typically give the tenant the right, on written notice, to renew the lease for a specific period "on the same terms and conditions" as the lease, except for the renewal rents and the inducements initially provided to the tenant, and except for the exercised option to renew, thereby ensuring that the tenant will not acquire an additional renewal option to renew. Insufficient attention to the terms of the renewal option may lead to unintended consequences.

For developers considering or participating in residential or non-residential development projects within the City of Toronto, a new by-law proposed by the TCDSB could significantly impact the financing...