When Sharon leased a store in a strip center for three years and wanted the option to renew or leave after lease expiration, what should she negotiate?

• A. A lease option.
• B. A renewal clause only.
• C. A purchase option.
• D. A sublease clause.

Answer: (A)

The main idea is securing flexibility at the end of the lease. A lease option gives the tenant the right, but not the obligation, to renew for an additional term or to end the lease after the current term, depending on how the option is written. By negotiating a lease option, Sharon can decide later whether to stay in the strip center under specified renewal terms (such as length and rent) or to walk away, without being forced into a new deal. This is exactly what she wants: the ability to renew or leave after expiration.

An renewal clause by itself simply preserves the option to renew; it doesn’t provide an alternative path to exit if needed. A purchase option relates to buying the property, not to staying or leaving after the lease term. A sublease clause governs leasing the space to someone else, rather than Sharon’s own right to continue or terminate the lease.