Does the tenant ever have a renewal option in a net lease agreement?
Initially, most leases do include a renewal option beyond the original 10, 15 or 25 year typical term. Sometimes, if a tenant does not have a renewal option and when that tenant extensively remodels and improves the property during the term of the original lease, the owner might agree to a 5 or 10 year extension at a negotiated rate. Investors should always use competent tax and legal experts prior to investing in real estate.
