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Updated about 1 year ago,

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John McKee#5 Commercial Real Estate Investing Contributor
  • Investor
  • Fairfax, VA
727
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1,086
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How important is the 5 year option in a lease?

John McKee#5 Commercial Real Estate Investing Contributor
  • Investor
  • Fairfax, VA
Posted

A lot of leases have multiple 5 year option clauses but are they really necessary from a landlord perspective?  It seems like the only benefit is to the tenant that can lock in their option rates for the long term.  Loan officers don't care unless they see the option exercised.  All the loan officer cares about is their commitment to the property.   

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