A lease clause that is an advantage to the lessee and a disadvantage to the lessor is a(n):

• A. Rent concession
• B. Option right
• C. Assignment clause
• D. Sublease permission

Answer: (B)

An option right in a lease creates a future choice for the tenant, most commonly the ability to renew the lease or to purchase at predetermined terms. This arrangement is advantageous to the lessee because it provides stability and price predictability without having to renegotiate a new lease if market conditions change. It also preserves the tenant’s ability to stay in place and secure favorable terms if rents rise. At the same time, it’s disadvantageous to the lessor because it limits the landlord’s flexibility to re-lease the space at current market rates or to take the property back if the tenant exercises the option.

Other lease features described in the choices either give the tenant flexibility that doesn’t hinge on a future, binding option (like the right to transfer the lease or sublease, or temporary rent reductions) or represent incentives or rights that don’t inherently place a future, unilateral constraint on the landlord’s ability to re-lease. The defining element here is the unilateral future choice tied to favorable terms for the tenant, which is what an option right provides.