In this article, you'll learn:

• How the Right of First Refusal (ROFR) works in commercial leases.
• Key questions to ask when negotiating an ROFR agreement.
• The importance of working with a tenant rep to navigate negotiations.

The Right of First Refusal (ROFR) is a common provision in commercial leases that allow landlords to lease or sell the property to the tenant based on the terms and conditions of the binding contract. It is an agreement that a tenant has with a landlord to lease additional space in a building. It is a powerful tool for existing office tenants, for it gives them the right to match an offer from an interested third party. The rights of first refusal can be a win-win device that can enhance a business operation. To effectively negotiate the right of first refusal, it is essential to know how it works.