Contracts

A Florida commercial lease between two sophisticated business parties is being negotiated. The tenant wants to include a 'demolition clause' in the lease. This clause would typically:

AAllow the tenant to demolish the building at lease end
BAllow the landlord to terminate the lease if they decide to demolish or redevelop the property✓ Correct
CRequire the tenant to restore the property to original condition at lease end
DPermit alterations and improvements to the property during the lease term

Explanation

A demolition clause (also called a recapture or redevelopment clause) gives the landlord the right to terminate the lease if they decide to demolish or substantially redevelop the property. It protects the landlord's flexibility for future development while giving the tenant notice of potential lease termination.

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