Be Informed Tuesdays: Commercial Real Estate Leasing Tips for Small & Midsize Businesses | Fast Growing Startups | Non-Profits & More
February 25, 2020
WHAT IS A RESTORATION CLAUSE?
A Restoration Clause, also known as a Make Good Clause, legally obligates Tenants, at the Landlord’s Request, to restore their leased commercial space back to its original condition before the Tenant possessed it upon the expiration of their lease.
This type of clause can be a very costly parting gift from your Landlord if you’re unaware of this financial obligation as highly customized commercial spaces in most cases doesn’t have a wide market appeal to other prospective Tenants thus it’s in the best interest of the Landlord financially to exercise this right and have you bring the space back to its original condition in order for them to market the space for lease again.