Another effective mid-lease strategy are Lease Termination Options. These are options that are pre-negotiated at the time when a company initially signs a lease which allows the company to terminate their lease early.

These options typically go into effect on a one-time right after a specific date or they are an on-going right after a certain date within the lease. When exercising a termination option, companies can expect to pay a termination penalty which is typically a portion of the unamortized costs that the landlord incurred upfront.

Termination Options are great for business since they provide additional lease flexibility within the term of their lease which allows a business to either downsize, move to a new location or simply end a lease agreement that no longer works for that business.

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And if you have any further questions about termination options, please reach out to a Rokos broker.