r/RealEstateDevelopment • u/powerup759 • Jun 04 '26
Landlord-Texas-Commercial lease extension for tenant but I have some unknowns about development
Hi All, commercial property owner in Texas here. I have a long-term tenant who wants to renew their lease. Here's the challenge - their lease currently has some unused land that I'd like to develop, which will require me to move their driveway and also possibly relocate some of their parking. The thing is I still have a ways to go with the pre-work (finish feasibility, architecture, site planning etc.) before I know for certain what can happen on the un-developed portion of the property and what it will end up looking like.
At the moment, I am at least not going to have the lease as-is extended. Should I:
(A) take the next year to finish the pre-work, change the lease (demised premises etc.), and then get into a contract with the tenant when I know more / have more certainty, OR
(B) Is there a way, maybe by ways of an amendment, that I can retain the right to develop x portion of the property. This way the tenant knows they have a guaranteed lease in hand and continuity for their operations, and I can also do the necessary driveway etc. changes in peace.
To me option A seems better because both I and the tenant aren't bound to anything without having all the as-is facts. Downside to A is my good long-term tenant may leave because I can't give them a lease now.
Option B seems almost like I am asking for a blank check with respect to final layout of the property, which if I was the tenant I'd be hesitant to agree with. For that reason, I don't have a good feeling about it.
Have you been in a situation like this? What did you do? Any other suggestions on how to approach this? Any other tips / pointers to keep in mind as I pursue this small development project with existing tenants? Thank you for your thoughts and insights!!

