What is Right of First Refusal (ROFR)?

Definition

A right of first refusal (ROFR) gives a tenant the right to match any bona fide offer the landlord receives from a third party for specified additional space, typically adjacent suites or expansion areas. If the tenant exercises their ROFR, they lease the additional space on the same terms offered by the third party. From a CAM perspective, ROFR exercises change the tenant's leased square footage mid-lease, which affects their pro-rata share calculation and may trigger denominator adjustments across the building. Property controllers must update billing configurations promptly when a ROFR is exercised to ensure accurate CAM calculations for both the expanding tenant and all other tenants whose pro-rata shares may shift as a result.