The "Right of First Refusal to Lease" clause grants an individual or entity the first opportunity to lease a property before the owner can offer it to other potential tenants. This provision ensures the holder has the priority to either accept the lease terms or waive the opportunity, allowing the owner to proceed with other parties.
Special Right of First Refusal to Lease. Provided that Lessee is in compliance with its obligations hereunder, as of the Lease Commencement Date and exclusively until the expiration of Initial Term of this Lease Agreement (the “ROFR Term”), Lessee will have a special right of first refusal to lease (the “Special Right of First Refusal to Lease”) an industrial building to be further vacated , property of Lessor and located within the Park (the “ROFR Building”) which is described in the layout attached hereto as Exhibit “ I”; and to be exercised in accordance with the following: a) The Special Right of First Refusal to Lease will be in force and effect during the ROFR Term and will only be triggered upon the occurrence of any of the following trigger events (each a “Trigger Event”): (i) a bona fide third party offer to purchase the ROFR Building; or (ii) an offer by any bona fide third party to lease the ROFR Building; or (iii) Lessor’s need to use the ROFR Building for any of Lessor’s intended purposes. b) Upon such Trigger Event, Lessor shall provide a written notice to Lessee informing Lessee of the occurrence of any of the Trigger Event, and upon receipt of such notice, Lessee shall have 10 (ten) business days to notify Lessor in writing of its decision whether to exercise, or not exercise, the Special Right of First Refusal to Lease. c) Should Lessee decide to exercise the Special Right of First Refusal to Lease, a separate lease agreement shall be executed within 10 Business Days following Lessee’s exercise of the Special Right of First Refusal to Lease, and such lease agreement will include a term of 10 years and will contain similar terms and conditions to those established herein which will govern the lease of the ROFR Building, except for the cost of the lease which will be the then current fair market cost for similar industrial buildings in terms of age, size and improvements installed thereof; in the understanding that any additional required improvements on said ROFR Building will be quoted separately.
If Tenant is willing to sign a lease on the same or better terms than a prospective new tenant, Tenant will have a right of first refusal to lease the Additional Premises.
Tenant acknowledges and agrees that that it does not have a right of first refusal to lease the Demised Premises nor does Tenant have any options to renew the Lease.
Property – The Lease includes 10 floors, levels 1 to 10. The Company has a right of first refusal to lease the remaining 3 adjacent floors in the Landlord’s other existing or future buildings that are located in the same office park.
Lessee shall have the Right of First Refusal to Lease Additional Space within the Project according to the terms and conditions of the attached “Exhibit C”.
Tenant has no option, right of first offer or right of first refusal to lease or occupy any other space within the property of which the Premises are a part
FIRST RIGHT OF REFUSAL, LEASE. Tenant shall have the right of first refusal to lease any space that becomes available on the 2nd and 3rd floor of the building. Upon the receipt of written notice that Landlord has received a bona fide offer (the Offer) for the lease of space in the Building by a third party, Tenant shall have ten (10) days to provide Landlord with an unequivocal, irrevocable, written commitment to lease space upon the terms set forth in the Offer. If Tenant fails to provide Landlord with such notice within such 10-day period, Landlord shall be free to lease space in the Building to the third party pursuant to the Offer. Tenant shall also have ongoing expansion rights within the building. The landlord shall notify the tenant of the availability of said premises and the tenant shall have five (5) business days to inform the landlord of their desire to lease the premises. The failure by tenant to notify the landlord shall result in the exhaustion of this right and the landlord shall be free to lease the premises to a third party.
Amendment to Lease. If Tenant timely exercises its Right of First Refusal to lease either alternative component of the First Refusal Space as set forth herein, Landlord and Tenant shall […***…] execute an amendment to the Lease, as amended (a "First Refusal Space Amendment"), for the corresponding First Refusal Space upon the Economic Terms set forth in the First Refusal Notice, including, but not limited to rent (the "First Refusal Space Rent"), but otherwise upon the TCCs set forth in the Lease, as hereby amended. Notwithstanding the foregoing, Landlord may, at its sole option, require that a separate lease be executed by Landlord and Tenant in connection with Tenant's lease of the applicable First Refusal Space, in which event such lease (a "First Refusal Space Lease") shall be upon on the Economic Terms and other approved conditions applicable to the First Refusal Space and otherwise on the same TCCs as the Lease, as amended, except as provided in the Lease, as hereby amended, to the contrary.
The Company leases its primary office space under noncancelable leases. Substantially all of the facility leases require the Company to pay maintenance, insurance and real estate taxes (additional rent expense). In November 2016, the Company entered into an amended and restated operating lease for its Chicago office space and exercised its right of first refusal to lease a contiguous building. The lease began in the second quarter of 2018 after construction was completed in May 2018.
Right of First Refusal. From and after the date Subtenant has declined or otherwise failed to exercise its Right of First Offer after having received a ROFO Notice, and provided that no Default has then occurred and is continuing, Subtenant shall have a right of first refusal (the “Right of First Refusal”) to lease the entirety (and not a portion) of the Building upon the terms and conditions set forth herein. If Subtenant exercises the Right of First Refusal, Subtenant shall be required to lease the entirety of the Building, even though the space described in the ROFR Notice (as hereafter defined) may comprise all or only a portion of the leasable space in the Building, and such lease of the ROFR Space will be on the terms and conditions contained in this Section 31, which may differ from the terms and conditions set forth in the ROFR Notice. Except as otherwise set forth in this Section 31 to the contrary, Subtenant’s lease of the Building pursuant to the Right of First Refusal shall be on all of the terms and conditions set forth in this Sublease.
RIGHT OF FIRST REFUSAL. Tenant shall have a one-time right of first refusal to lease that certain space within the Property known and numbered as Suite 185 (the “Option Space”), pursuant to the following terms and conditions. Provided this Lease is in full force and effect and Tenant is not in Default hereunder, Landlord agrees to notify Tenant in writing the first time Landlord has a prospective third party tenant who in Landlord’s reasonable determination is ready, willing and able to occupy and lease all or any portion of said Option Space. Upon receipt of Landlord’s notice, Tenant shall have ten (10) days in which to notify Landlord in writing of its election to lease not less than all of the Option Space set forth in Landlord’s notice. In the event Tenant does not notify Landlord within said ten (10) days, Tenant’s rights with respect to the space identified in Landlord’s notice will be null and void, and Landlord may lease such space to any prospective tenant, at such rental and upon such terms and conditions as Landlord in its sole judgement may desire. If Tenant notifies Landlord within said ten (10) days of Tenant’s election to lease the space identified in Landlord’s notice, Tenant shall lease the applicable Option Space upon the same terms and conditions as set forth in this Lease, except as follows:
If Party B fails to deliver a lease renewal notice within the above timeline, this Contract shall be terminated at the expiration of the Lease Term and Party B shall no longer have the right of first refusal to lease the Premises under the same terms and conditions.
The “Right of First Refusal to Lease” (ROFR) is a contractual agreement that provides an individual or entity the first opportunity to lease a property before the owner can offer it to others. This gives the holder a preferential option to rent the property under negotiated terms, ensuring that they can exercise their right if they wish to lease the property before a new deal is made with another party.
You should consider including a Right of First Refusal to Lease in your agreements when:
When drafting a Right of First Refusal to Lease clause, consider including the following elements:
Example:
The Tenant shall have the Right of First Refusal to lease the adjoining office space commencing on the termination of the current lease. The Landlord shall notify the Tenant in writing of the availability of said space, and the Tenant shall have 30 days to exercise their right to lease under conditions mutually agreed upon.
Contracts and agreements that might typically include a Right of First Refusal to Lease are:
Try our AI contract analysis and extract important clauses and information from existing contracts.
< <
Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
The right of last refusal clause grants a party the opportunity to match any offer that another party is prepared to accept before a deal is finalized. This ensures that they have the final chance to secure the deal under the same terms offered by another potential buyer or partner.
The "Right of Reversion" clause refers to a contractual provision that allows property, rights, or interests to revert back to the original owner or grantor after certain conditions are met or upon the occurrence of specific events. This clause is often used in agreements to ensure that the original party retains future control over the asset if the terms of the agreement are not fulfilled or if certain triggers, like the expiration of a lease, come into effect.
The right of set-off is a contractual clause allowing one party to offset mutual debts with another party by deducting the owed amount against any obligations the other party has to them. This provision helps reduce the risk of default by enabling both parties to net out their liabilities and receivables.
Fill out the form and we will get in touch with you to give you a personal, customized demo of fynk.
Greetings!
I'm Markus, co-founder of fynk. After you've submitted the form, I'll swiftly get in touch with you.
Also, right after you submit your details, you can pick a time that works best for you for our meeting.
