Enter to open, tab to navigate, enter to select
End of Term Restoration
Practical Law Glossary Item 3-503-3980 (Approx. 3 pages)
Glossary
End of Term Restoration
A tenant's obligation to restore the premises back to its base building condition, or a condition specified in the lease, before the end of the lease term. Base building condition usually includes that the:
- Floors are bare concrete.
- Non-structural interior walls are demolished.
- Building's standard finishes are applied throughout the premises, such as a specified standard of paint color and brand.
Many times, a tenant's obligation to restore the premises before the end of the lease term is applied even though the tenant did not construct the improvements at the premises originally. If the departing tenant assumed its lease by an assignment and assumption agreement, the departing tenant may still be obligated to:
- Remove the improvements of the prior tenant.
- Restore the premises to its original condition at the time the lease was signed.
In many instances, the landlord may have the right to perform the restoration work on the tenant's behalf and expense.
The scope of the tenant's restoration obligations vary based on the tenant's negotiating leverage and the local industry custom.
For more information about tenant's restoration obligations, see Practice Note, Office Lease Negotiations for Tenants: End of Term Restoration.