Renewal 1
Risk
Renewal & options
Easier to ask for
Time is of the essence: a notice even one day late could cost you the option
Consider asking for
No time-of-essence language
LeaseSample report: illustrative, not a real lease
123 Sample Street, Suite 400: 5-year office renewal (illustrative)
We analyzed your lease clause by clause and linked each finding to the provision it comes from.
Lease termCommenced March 1, 2024 · Runs to about March 1, 2029 (calculated, confirm against your signed lease) · 5-year term
D
51 / 100
Weak, with real risk for you
01 · The bottom line
This lease could use real changes before you sign or renew.
Consider starting with the first point below. Several terms favour the landlord.
One term in this lease holds the overall score down. The next section shows which term, and why.
Negotiation leverage: HighHow much room you have to win changes. It is separate from how good the lease is. It reflects how much time you have before the notice deadline, how much similar space is available nearby, the landlord's situation, and whether you could pay for a move. Low leverage does not mean you should not ask. It means you could have to give something to get something.
Start here
Renewal & options
Time is of the essence: a notice even one day late could cost you the option
The score shows how this lease performs against Renewal Option's review framework. Software produced the analysis. It is not legal advice, a market valuation, or a recommendation to sign, renew or leave. Check important findings against your signed lease.
How grades work
A
80 and above
Strong for the tenant
B
70 to 79
Solid, with small things to improve
C
60 to 69
Workable, with real gaps
D
50 to 59
Weak, with real risk for you
F
Below 50
Heavily favours the landlord
The score out of 100 shows how your lease answers the questions in our framework. Questions that matter more commercially count for more. The questions fall under four measures: risk, financial fairness, renewal strength and flexibility. If the lease says nothing on a question, the score is not marked down for it. The exception is a small number of questions where saying nothing is the answer, such as whether you have a renewal option. Two things can limit the overall score. A single term the framework treats as severe holds it to 68 at most (a C), or to 55 (a D) in its most severe forms. A critical combination of clauses holds it to 55. An Agreement to Lease is scored only on the questions that kind of document is meant to answer.
One term holds your overall score down
This term is serious enough to hold your overall grade down on its own, however good the rest of the lease is. Consider raising it first.
- Term checked
May the tenant assign the lease?
Why it matters this much: the overall grade is held down when the lease does not let you assign it at all.
02
What to negotiate
The terms worth raising with your landlord, starting with the most important. The order follows how much each one could matter.
2
Risk
Premises, use & administration
Easier to ask for
48 to 72 hours, and certifies away claims
Consider asking for
10+ business days, factual status only
3
Financial Fairness
Operating costs & audit rights
Easier to ask for
Uncapped, or a % of total costs so it compounds
Consider asking for
Capped at market % of net rent or actual cost
10 more points to reviewSee all findingsShow fewer
4Operating costs & audit rights30- to 60-day deemed acceptance
RiskEasier to ask for
Consider asking for
12+ months to dispute
5Renewal & optionsNo mechanism, landlord's determination is final, or the appraiser/decision-maker is unilaterally selected by the landlord alone
Renewal StrengthHard to win in full
Consider asking for
Binding arbitration or third-party appraisal, with the appraiser/arbitrator chosen jointly, by an agreed neutral process, or court-appointed if the parties can't agree
6Operating costs & audit rights'Without limitation' catch-all covering all ownership costs
Financial FairnessHard to win in full
Consider asking for
Closed, itemized list of includable costs
7Operating costs & audit rightsNo audit right, or expressly waived
RiskHard to win in full
Consider asking for
Express audit right with access to invoices
8Assignment & sublettingHolds your grade downAssignment absolutely prohibited
FlexibilityHard to win in full
Consider asking for
Assignment permitted with consent
9Assignment & sublettingSole and absolute discretion to refuse
FlexibilityHard to win in full
Consider asking for
Consent not to be unreasonably withheld
10End of leaseLandlord elects at expiry: exit cost unbudgetable
RiskHard to win in full
Consider asking for
Fixed in writing at approval time
11End of leaseFull restoration to base building at tenant's cost
RiskHard to win in full
Consider asking for
Modest, quantifiable scope
12Operating costs & audit rightsBoth charged: double-dipping on the same service
Financial FairnessEasier to ask for
Consider asking for
One clearly defined fee only
13Renewal & optionsFloor at current rent regardless of market
Financial FairnessHard to win in full
Consider asking for
No floor: rent can fall if market falls
Clause interactions
Some terms add more risk together than each one does alone. These are the combinations we found in your lease.
Operating costs that are hard to check
HighThe lease defines operating costs broadly. It gives you no right to audit them. It leaves a short time to dispute a statement. Together, a charge you disagree with could be hard to challenge.
03
How your lease scores
Where your grade comes from. Four measures make up the grade. Negotiation opportunity is reported separately, not part of the grade.
Risk
How much the lease could cost you or leave to the landlord's choice. Examples: a personal guarantee with no limit, one-sided liability terms, and costs with no cap. A higher number means more risk.48/ 100
High risk
how much could go wrong for you
What is behind this score
- 12+ months before expiry (commonly missed)
- Time is of the essence: a notice even one day late could cost you the option
See details
- Landlord may terminate during renewal: option is hollow
What the lease gets right
- Guarantee expires or burns down
- Proportionate abatement during untenantability
- Guarantee ends on permitted assignment
Financial Fairness
How balanced the rent and cost terms are. Examples: rent increases, limits on operating costs, and your right to check the landlord's numbers.48/ 100
Favours the landlord
how balanced the rent and cost terms are
What is behind this score
- Landlord discretion or vague 'to be agreed'
- Area 'final and binding'; verification waived
See details
- Escalations set later by landlord or 'to be negotiated'
What the lease gets right
- How this rent compares to what you've actually seen nearby is the starting point for whether it's fair.
- Rent reads at or below what you've seen for comparable space.
- Rent as a share of revenue tells you how much room this negotiation actually has.
Renewal Strength
How dependable your right to renew is. Examples: when you must give notice, how the renewal rent is set, and whether renewal is a firm right or only a chance to negotiate.61/ 100
Workable
how dependable your right to renew is
What is behind this score
- No mechanism, landlord's determination is final, or the appraiser/decision-maker is unilaterally selected by the landlord alone
- Binding notice with rent set later by landlord-controlled process
See details
- The lease gives you one five-year renewal option, which could extend your tenancy to 2034. After that, the lease gives you no further right to stay.
What the lease gets right
- No default condition, or material monetary default only
Flexibility
How much room you have if your plans change. Examples: your right to assign or sublet, options to take more space or leave early, and protection if the landlord wants to move you.42/ 100
Limited
how much room you have if plans change
What is behind this score
- Single narrow use; change at landlord's sole discretion
- Assignment absolutely prohibited
See details
- Sole and absolute discretion to refuse
Negotiation opportunity
reported separately, not part of the gradeHow much room you have to win changes. It is separate from how good the lease is. It reflects how much time you have before the notice deadline, how much similar space is available nearby, the landlord's situation, and whether you could pay for a move. Low leverage does not mean you should not ask. It means you could have to give something to get something.How much room you have to win changes. A weak lease can still be worth negotiating. The rating reflects some terms in the lease and what you told us at intake: your time before the notice deadline, the space available nearby, the landlord's situation, and whether you could pay for a move. It answers how winnable this is, not how good the lease is.
04
Rent and escalation
What the lease could cost you, year by year. The main figures come first, then the detail. Each figure is calculated from numbers the lease states.
Net rentBase rent only. The landlord bills operating costs separately, on top of this amount. Operating costs include items such as property taxes, insurance and building maintenance.You pay base rent plus operating costs, billed separately.
Year 1, per month
$10,833
Rent + operating costs, averaged after free rent
Net rent, year 1 → year 5
$24.00 → $27.81
per sf per year · +15.9% over the term
Over 5 years
$752,949
Illustrative, rent + operating costs, based on 4,000 sf
Your unit
4,000 sf
Operating costsYour share of the landlord's costs to run the building, billed on top of base rent. Leases also call it Additional Rent or TMI (taxes, maintenance, insurance).
$12.50 /sf/yr
Current estimate
Free rentA period when you occupy the space but do not owe base rent. Leases also call it a rent abatement. Operating costs can still be payable during it, depending on what the lease says.
2 months
$16,000 credit
TI allowanceTenant improvement (TI) allowance. Money the landlord contributes toward building out or renovating your space. It is often paid as a lump sum, or as a repayment once the work is done.
$60,000
$15.00/sf
Your rent rises two ways. The lease sets stepped rates and adds a separate increase on top, so together they could raise rent faster than either suggests.
Renewal option5 years
Give notice by June 1, 2028. Calculated from the lease's notice period. Confirm it against your signed lease.
If you stay past the end without renewingThe rent you could owe if you stay in the space after the lease ends without a signed renewal. Leases often set it higher than your normal rent.
150% of your final year's rent · about $41.72/sf/yr
See the detail behind these figuresHide the detail
How year 1 adds up
$96,000 rent + $50,000 operating costs − $16,000 free rent (2 months) = $130,000 for year 1. After the free months, about $12,167 a month.
Year by year
| Year | Rate /sf/yr | Rent | + Operating costs | − Free rent | Total |
|---|---|---|---|---|---|
| 1 | $24.00 | $96,000 | $50,000 | − $16,000 | $130,000 |
| 2 | $24.72 | $98,880 | $50,000 | None | $148,880 |
| 3 | $26.21 | $104,840 | $50,000 | None | $154,840 |
| 4 | $27.00 | $107,985 | $50,000 | None | $157,985 |
| 5 | $27.81 | $111,244 | $50,000 | None | $161,244 |
Operating costs are held at the lease's current estimate for illustration. Actual costs can change each year.
Free rent against increases: the free rent offsets about 3.1% of the term's rent, once. The increases put year 5 about 15.9% above year 1, and stay.
What the lease says
Starting rent is $24.00/sf/year, stepping up over the 5-year term.
Rent increases 3% each year on top of the step schedule, compounding annually.
Tenant pays its proportionate share of Operating Costs, including a management fee capped at 10% of gross rents.
Building total: 100,000 sf.
Unit area: rentable area per Section 1.1.
Free rent
Months 1 to 2 of the Term
2 months' free base rent at the start of the term (fixturing period); Operating Costs are still payable during those months.
Section 3.2: "Provided the Tenant is not in default, Base Rent shall be abated for the first two (2) months of the Term."
TI allowance
$15.00/sf ($60,000 total), paid within 30 days of substantial completion of tenant's work, with no landlord-side conditions beyond providing proof of paid invoices.
Renewal option
The notice window opens March 1, 2028 (calculated).
If you renew, the renewal term runs to March 1, 2034 (calculated).
Rent: Negotiated fair market rent; arbitration if unresolved 60 days before expiry.
Holdover
150% of the rent payable immediately before expiry, tenancy at sufferance (no fixed term), plus exposure to the landlord's consequential damages.
Thinking about a shorter term?
Term Check compares renewing for the full term with a shorter renewal that lets you change your space sooner. It uses the figures from this lease. It is free, and it stores nothing.
About this report
Software produced this report from the lease you uploaded. Each figure is calculated from numbers in your document. Each finding drawn from the lease names the clause it comes from. The report does not estimate market rents or compare your lease with other buildings. Before you act on a date, a figure or a clause reference, check it against your signed lease. Full terms.