This Commercial Lease With Option To Renew is designed for use in South Africa when a landlord wishes to grant a tenant the right to occupy commercial premises with the additional benefit of a future renewal option. The document is particularly useful for businesses seeking to establish or maintain a presence in a specific location while maintaining flexibility for future operations. It includes comprehensive provisions covering rental terms, maintenance obligations, permitted use, and specific conditions for exercising the renewal option, all in compliance with South African property law and commercial legislation. The agreement is suitable for various commercial properties including retail spaces, offices, and industrial premises, and can be customized based on the specific needs of the parties while maintaining essential legal protections under South African law.

1. Parties: Identification of the Landlord and Tenant, including registration details for companies

2. Background: Context of the lease agreement and brief description of the property

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Property Description: Detailed description of the leased premises, including physical address and extent

5. Lease Period: Duration of the initial lease term and commencement date

6. Option to Renew: Terms and conditions of the renewal option, including notice periods and renewal term

7. Rental and Other Charges: Rental amount, payment terms, deposits, and other financial obligations

8. Escalation: Annual rental increase provisions and calculation method

9. Use of Premises: Permitted use of the property and any restrictions

10. Maintenance and Repairs: Responsibilities of landlord and tenant for maintenance and repairs

11. Insurance and Risk: Insurance requirements and allocation of risk

12. Utilities and Services: Responsibility for utilities, services, and related charges

13. Alterations and Improvements: Rules regarding modifications to the premises

14. Access and Security: Landlord's right of access and security arrangements

15. Assignment and Subletting: Restrictions on assignment and subletting of the premises

16. Breach and Termination: Consequences of breach and termination provisions

17. Dispute Resolution: Process for resolving disputes between parties

18. General Provisions: Standard contractual provisions including notices, entire agreement, and governing law