The clause that allows a landlord to recover space that a tenant is unable to occupy or sublease is known as what?

The recapture clause is fundamentally important in commercial leases. It provides landlords the ability to reclaim a portion of leased space if the tenant is unable to occupy it or sublease it as intended. This clause protects the landlord's interests by ensuring they can regain control over the property, which may allow them to re-rent the space to another tenant or utilize it in another beneficial way. This mechanism helps maintain the value and usability of the property from the landlord's perspective.

Other options do not fulfill the same function. A termination clause generally relates to ending a lease agreement altogether under specific circumstances. The lease option clause gives a tenant the right to purchase the property or extend the lease under certain conditions but does not address space recovery. A sublet clause permits tenants to rent their leased space to another party but does not grant landlords the ability to reclaim that space if the tenant is unable to occupy it. Thus, the recapture clause distinctly serves the purpose of allowing landlords recovery of leased space.