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Office and Retail Leasing: Exit and Expansion Strategies

April 26, 2012

As the economic outlook continues to remain "uncertain", many office and retail tenants are hesitant about long-term space commitments and want flexibility to address the unpredictability of their future space needs, such as accelerated exit and/or expansion rights. To remain competitive, landlords cannot ignore their tenants' call for flexibility but they need to balance the risks involved in granting such rights. Tannenbaum Helpern's commercial real estate lawyers and executives from JP Morgan Global Real Estate and RD Management, offered insight into the lease provisions commonly negotiated to allow tenants such flexibility and the key concerns for both landlords and tenants in such circumstances.

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