The specific parameters of the renewal.
Also known as: Extension Periods
By Angel Campa, Founder · Updated March 2026
Renewal terms define the duration, rent basis, and conditions of each renewal period. A renewal at "fair market value" provides no cost certainty, while a renewal at "95% of FMV" or with a fixed escalation structure locks in savings. Knowing whether the renewal is for one 5-year term or two 3-year terms affects long-term planning and total financial exposure.
In the "Renewal Option" or "Extension Option" section. Look for specific details on renewal period length, number of options, rent calculation methodology (FMV, fixed rate, or CPI), and any conditions precedent.
Lextract uses a combination of AWS Textract OCR and Claude AI to identify and extract the renewal terms from your lease PDF. The AI searches for the field name and common aliases like "Extension Periods" across all pages of the document, then assigns a confidence score based on OCR quality and extraction certainty. Fields with lower confidence are flagged for human review.
Has Renewal Option
Indicates the presence of a contractual right to extend the lease term.
Renewal Notice (Days)
The deadline prior to expiration by which the tenant must exercise the renewal.
Has Termination Option
Indicates the right to break the lease prior to the natural expiration date.
Termination Penalty
The fee or liquidated damages required to execute an early termination.
Right of First Refusal
Indicates a ROFR on specific adjacent or building spaces.
Right of First Offer
Indicates a ROFO to lease space before it hits the open market.
Fair market value (FMV) renewal rent means the rent is reset to reflect current market conditions at the time of renewal. The lease should specify how FMV is determined -- typically through broker appraisal, comparable lease analysis, or binding arbitration if the parties cannot agree.
Yes. Renewal periods are often shorter than the initial term (e.g., 5-year initial term with two 3-year renewal options). Rent structures may also differ -- the initial term may have fixed escalations while the renewal uses FMV or CPI adjustments.
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