What is a demolition clause?

A demolition clause allows a landlord to terminate your lease to redevelop or demolish a property and are often found in leases for older properties.  This is problematic for tenants who invest in their rental property by making improvements only to have the landlord demolish it a few years down the line. If a landlord insists on a demolition clause and you want the location, limit your potential losses by insisting that the demolition right remain inactive for a certain period of time to ensure that demolition does not occur near the beginning of your lease term and make sure the landlord pays you for your business upon termination.