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PLAYBOOK TEMPLATES
Real Estate Purchase Agreement
A Real Estate Purchase Agreement governs the sale and transfer of property ownership between buyer and seller. This playbook covers due diligence, contingencies, and closing mechanics.
Lease Term and Renewal
Negotiation strategy
Negotiate for flexible renewal options and clear break clauses to ensure adaptability to changing business needs. Ensure that notice periods for renewal are reasonable and allow for strategic planning.
Secure long-term commitments with favorable terms while allowing for market adjustments. Ensure break clauses are structured to minimize potential revenue loss.
Essential elements
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Lease Duration
Initial term and end date.
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Renewal Options
Terms for extending the lease.
3
Break Clause
Conditions for early termination.
Action framework
ACCEPT
Propose edits when terms are unclear or do not align with strategic goals.
EDIT
Reject clauses that impose unreasonable notice periods or lack flexibility.
ADD
Add clauses to address market changes or specific business needs.
PRO TIP
Always align lease terms with long-term business strategy and market conditions.
Real-world examples
FAVORABLE
Preferred Lease Term Clause
"The initial term of this Lease shall commence on [Start Date] and shall expire on [End Date]. The Tenant may renew the Lease for an additional term of [Number of Years/Months] by providing written notice at least [Number of Days/Months] before the expiration."
NEUTRAL
Standard Lease Term Clause
"The initial term of this Lease shall commence on [Start Date] and shall expire on [End Date], unless sooner terminated in accordance with the provisions of this Lease. The Lease Term shall be for a period of [Number of Years/Months]."
UNFAVORABLE
Ambiguous Renewal Terms
"The Tenant may renew the Lease at the end of the term, subject to mutual agreement on terms."
Alternative scenarios & positions
High-Risk Projects
In high-risk projects, ensure break clauses allow for early termination without significant penalties to mitigate potential losses.
Rapid Expansion Plans
For businesses with rapid expansion plans, negotiate shorter lease terms with multiple renewal options to maintain flexibility.
Market Condition Changes
Include renegotiation triggers based on market conditions to adjust lease terms in response to economic shifts.
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