First Right of Refusal
A condition that the landlord must offer available space in the building to the tenant before leasing it to someone else. Typically this right is only given on adjacent spaces and is used to help a tenant with growth concerns when signing a long term lease. The tenant must take the new lease space at the rate pre-negotiated with the other prospective tenant. Often, this right of refusal is only good one time and the tenant has only a few business days to make a decision. If the space is refused, the landlord has no further obligation to make it available to the tenant in the future.
admin @ October 23, 2007