Agreeing to Agree Isn’t Enough to Lock in a Lease Renewal
It’s hard to determine today how much rent to charge a tenant for a lease renewal (or extension) that won’t happen until years later. It may be tempting to skirt this problem by providing for the renewal at an unspecified rent “to be negotiated” or “agreed to” in the future. Agreeing to agree is fine as long as you actually do reach an agreement at renewal time. But if you don’t and the dispute lands in court, the party seeking to enforce the renewal provision may find itself out in the cold.