Expansion Building Sample Clauses
The Expansion Building clause defines the terms under which a tenant may lease additional space within a property beyond their original premises. Typically, this clause outlines the process for exercising expansion rights, such as notification requirements, the timing for making such requests, and the specific areas or buildings that may be subject to expansion. Its core practical function is to provide tenants with flexibility to grow their operations within the same property, while giving landlords a clear framework for accommodating such requests and managing space allocation.
Expansion Building. 6 6.1 Lock-Up Option.............................................. 6 6.2 Exercise.................................................... 7 6.3
Expansion Building. (a) During the period commencing on the Commencement Date and ending on the thirty (30) month anniversary of the Commencement Date (such period being called the “Additional Building Option Period”), provided that (i) no Major Default has occurred and is continuing, and (ii) the Lease remains in full force and effect in accordance with its terms, Tenant shall have the right to deliver written notice to Owner of Tenant’s desire for Owner to construct an office building (the “Additional Building”) on the approximately 2.25-acre portion of the Land described on Exhibit D attached hereto (the “Additional Building Land”) for Tenant’s occupancy (any such notice from Tenant to Owner being called a “Notice to Construct”). Any Notice to Construct must describe (A) the Building Square Footage for the Additional Building, which shall not be less than 75,000 square feet or more than 300,000 square feet, (B) the number of parking spaces required by Tenant for the Additional Building (which shall not be less than the parking required by the Legal Requirements and Permitted Exceptions or more than four (4) parking spaces for each 1,000 square feet of Rentable Area in the Additional Building), and (C) the date by which Tenant desires to take possession of the Additional Building. During the Additional Building Option Period, Owner shall cause the Additional Building Land to remain available for the construction of the Additional Building if Tenant elects to exercise its rights under this Section 1.
(b) If Tenant delivers a Notice to Construct to Owner in accordance with Section 1(a) above, then within sixty (60) days following its receipt of such Notice to Construct, Owner shall consult with not less than three (3) commercial banks to determine if Owner can obtain financing for the construction of the Additional Building on terms reasonably acceptable to Owner (such sixty (60) day period being called the “Preliminary Financing Period”). If within the Preliminary Financing Period Owner determines that it cannot obtain financing to construct the Additional Building on terms reasonably acceptable to Owner, then Owner shall deliver written notice of such determination to Tenant and upon the delivery of such written notice to Tenant, this Section 1 shall terminate and Owner shall have no further obligation to construct the Additional Building. If Owner determines within the Preliminary Financing Period that it can obtain such financing, the parties will promptly enter into a ne...
Expansion Building