Newbie RE attorney question - if a commercial lease provides an option to renew for x years, and the tenant exercises the option (timely and in accordance with lease), does the LL have any leverage to change unrelated terms for the renewal period? Client exercised option and LL is insisting they sign a new lease that is mostly the same but changes some key provisions (like percentage of operating costs attributable to client). My instinct is no, but interested to hear other perspectives.

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LL can’t do that and would lose in court. Problem is you don’t want the cost or time of court. Make sire your client is ready to pay rent at the correct rate on the renewal date even if no amendment is signed and stick to your guns.

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Thank you!

Is the premises subject to re-measurement in the lease? I agree with P1, but there could be separate provisions in the lease that could support a change like that. Naturally, it depends.

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No. The lease is really a mess, so I’m thinking the LL is either handling leasing on their own or getting bad advice. I will definitely scour the lease for anything arguably supporting that though. Thanks!

No its not permitted, the renewal should be on the same terms as the original lease unless specified otherwise in the original lease.

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Also, the changed terms were not addressed at all in the renewal provisions of the lease. TIA!

Side note: you practice RE in NY? If so- let’s connect so we can support each other with these type of questions . 😄

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