Tenant right to surrender a portion of the premises at a stated trigger date.

  • Tenant right to surrender a portion of the premises at a stated trigger date.
  • A contraction right allows the tenant to surrender a defined portion (typically 10-25%) of the premises at a stated date, often subject to a fee equivalent to the unamortised TI and free rent allocable to the surrendered space..

Contraction right

Lease structure · Global

Short definition

Tenant right to surrender a portion of the premises at a stated trigger date.

Full definition

A contraction right allows the tenant to surrender a defined portion (typically 10-25%) of the premises at a stated date, often subject to a fee equivalent to the unamortised TI and free rent allocable to the surrendered space.

Why this matters for Class A leasing

Contraction right is part of the lease structure vocabulary that institutional Class A occupiers, landlords, and advisers use across Global markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks regional variation alongside the global standard so cross-border occupiers can translate quickly.

See also