A right of first refusal (ROFR) gives the tenant the right to match any bona fide third-party offer the landlord receives for adjacent or specified expansion space before the landlord can lease that space to the third party. The tenant receives notice of the offer and has a limited period — typically 5–15 business days — to exercise the right to lease on the same terms as the third-party offer.
By Angel Campa, Founder · Updated March 2026
ROFRs are valuable for tenants who anticipate growth and want the option to expand into adjacent space without committing to it upfront. However, a ROFR is considered a "reactive" right — the tenant can only respond to third-party offers rather than proactively requesting space — which means the landlord retains control over the timing and terms. When the landlord receives a favorable third-party offer, the tenant must be prepared to match it immediately, which requires internal approval processes and financial resources to be in place before the notice arrives.
Specify that the ROFR space is identified by suite number or floor in the lease, not defined vaguely as "adjacent space." Negotiate a notice period of at least 10 business days — not calendar days — to provide adequate time for internal approval. Include a rental rate cap: if the third-party offer exceeds a specified rent level, the tenant's ROFR activates at the capped rate rather than the market rate, preventing the landlord from pricing the space above reach. Ensure the ROFR right survives lease assignment to affiliates so that corporate reorganizations do not extinguish the right.
ROFR at third-party offer terms (most common), ROFR at predetermined formula rent, ROFR limited to specific identified spaces, and ROFR that converts to a right of first offer after a certain period.
Lextract extracts these fields directly from your lease PDF when this clause is present:
Right of First Offer (ROFO)
A right of first offer (ROFO) gives the tenant the right to make the first offer to lease specified expansion space before the landlord markets that space to third parties.
Expansion Option
An expansion option gives the tenant the contractual right to lease additional specified space within the building or property at a predetermined rental rate or formula, during a defined window within the lease term.
Recapture Clause
A recapture clause gives the landlord the right to take back — recapture — the leased premises when the tenant requests consent to assign the lease or sublet the space.
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