Termination/Restoration Clause



For part three of our five-part series about the most important lease clauses for dentists to understand, we’re going to talk about termination/restoration clauses. This is particularly important for any dentists who think they may need to terminate their lease early. If your practice expects a large amount of growth or is in the process of downsizing, this clause may be very important to you.

What is the termination/restoration clause?

A termination/restoration clause is when a tenant has the right, prior to the natural expiration of the lease term, to terminate the lease and walk away from the space and the obligations in the lease. In this clause typically there are defined expectations for how the space should be turned over to the landlord upon termination (i.e., all wiring needs to be removed from walls).

Why is this important to dentists?

This clause is commonly used as a tool to allow you to have flexibility in your lease, in case you outgrow the current space or decide that you don’t need as much space and would rather move out and downsize. This clause also defines potential financial expectations for you when you plan to exit the space, saving time and money.

If you would like to learn more about termination/restoration or general dental lease information, contact me at 612.373.0281.

Look for lease clause #4 from the top 5 lease clauses to know for dental leases next week!

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