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PLAYBOOK TEMPLATES
Tenant Improvement Allowance Agreement
A Tenant Improvement Allowance Agreement defines funding and construction terms for tenant space modifications. This playbook provides negotiation insights on payment schedules, approval rights, and completion standards.
Lease Term & Renewals
Negotiation strategy
Ensure the lease term aligns with long-term property management goals. Negotiate renewal terms that provide flexibility for market adjustments.
Secure favorable renewal options to maintain business continuity. Negotiate clear notice periods to avoid unexpected lease terminations.
Essential elements
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Initial Lease Term
Start and end dates of lease.
2
Renewal Options
Terms for extending the lease.
3
Notice Requirements
Timeframe for renewal notifications.
Action framework
ACCEPT
Propose edits when renewal terms are vague or unfavorable.
EDIT
Reject clauses that automatically renew without consent.
ADD
Add clauses if renewal terms are missing.
PRO TIP
Always specify exact dates and conditions for renewal to prevent disputes.
Real-world examples
FAVORABLE
Clear Renewal Clause
"The initial lease term shall commence on [Start Date] and expire on [End Date]. The Tenant shall have the option to renew the lease for [Number] additional terms of [Duration] each, provided written notice is given [Notice Period] prior to the expiration of the current term."
NEUTRAL
Basic Renewal Agreement
"The lease may be renewed for successive [Duration] terms upon mutual agreement of the parties, with notice given [Notice Period] before the end of the current term."
UNFAVORABLE
Automatic Renewal Clause
"The lease will automatically renew for an additional term unless either party provides notice of termination at least [Notice Period] before the end of the current term."
Alternative scenarios & positions
High-Turnover Properties
In high-turnover properties, shorter lease terms with frequent renewal options can provide flexibility to adjust to market demands.
Long-Term Tenancies
For long-term tenancies, ensure renewal terms are favorable and align with strategic business goals to maintain stability.
Jurisdictional Compliance
Tailor lease terms to comply with local laws, which may require specific renewal and notice provisions.
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WEEK 3
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WEEK 4
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