Property Management

A Kentucky commercial landlord includes a demolition clause in their leases. This clause allows the landlord to:

ARemove fixtures from the building at lease end
BTerminate the lease with proper notice if they decide to demolish or substantially redevelop the building✓ Correct
CDemolish tenant improvements without compensation
DIncrease rent to cover future redevelopment costs

Explanation

A demolition clause (also called a redevelopment clause) in a commercial lease allows the landlord to terminate the lease if they plan to demolish or substantially redevelop the property, typically with specified advance notice. This protects the landlord's ability to redevelop while giving the tenant some planning time.

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