Contracts

A Massachusetts commercial lease contains a 'demolition clause.' This allows the landlord to:

ADemolish leasehold improvements at the lease's end
BTerminate the lease early if the building is to be demolished or substantially renovated✓ Correct
CRequire the tenant to demolish their own improvements
DDemolish portions of the building for renovations during the lease term without termination

Explanation

A demolition clause (or recapture clause for redevelopment) allows the landlord to terminate the lease with notice if the building is to be demolished or substantially redeveloped, giving the landlord flexibility for major projects.

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