Right of First Refusal

A Right of First Refusal is a proactive expansion tool commonly negotiated by growing healthcare practices. Under this provision, if the landlord receives an offer from a third party to lease a specific space (typically adjacent to the existing tenant), the current tenant has the right to match that offer and take the space first. The landlord must present the third-party terms to the existing tenant, who then has a defined window (typically 5–10 business days) to accept or decline. ROFR differs from a Right of First Offer, where the landlord must approach the existing tenant before marketing the space. For healthcare operators in the Chicago suburbs expecting practice growth, securing a ROFR on adjacent suites can be the difference between seamless expansion and costly relocation.

Expanding in place is far less disruptive and expensive than relocating. A ROFR allows healthcare practices to plan for growth without committing to space they don't yet need.

A growing oral surgery group occupying 2,500 sq ft secures a ROFR on the adjacent 1,800 sq ft suite. When the landlord receives an offer from a competing tenant, the oral surgery group exercises the ROFR and expands in place.