---
title: "Termination option — Class A Atlas glossary"
description: "Tenant right to terminate the entire lease at a stated trigger date, often subject to a fee."
canonical: https://classa.info/glossary/termination-option
pageType: glossary
lastUpdated: 2026-04-01T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> Tenant right to terminate the entire lease at a stated trigger date, often subject to a fee.

## TL;DR

- Tenant right to terminate the entire lease at a stated trigger date, often subject to a fee.
- A termination option (sometimes 'kick-out') gives the tenant the contractual right to end the lease at a stated date, subject to a termination fee equal to the unamortised TI, free rent, and brokerage.

# Termination option

*Lease structure · US*

## Short definition

Tenant right to terminate the entire lease at a stated trigger date, often subject to a fee.

## Full definition

A termination option (sometimes 'kick-out') gives the tenant the contractual right to end the lease at a stated date, subject to a termination fee equal to the unamortised TI, free rent, and brokerage. Standard on long-term US leases for risk management.

## Why this matters for Class A leasing

Termination option is part of the lease structure vocabulary that institutional [Class A](/glossary/class-a) occupiers, landlords, and advisers use across US markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks the US definition alongside the global standard so [cross-border](/topics/cross-border-expansion) occupiers can translate quickly.

## See also

- [Break clause](/glossary/break-clause)
- [Contraction right](/glossary/contraction-right)

## Related topics

- [**Class A Lease Negotiation**](/topics/class-a-lease-negotiation) — How to negotiate a Class A office lease — the playbook from LOI to signed deal.
- [**Hybrid Workplace Strategy**](/topics/hybrid-workplace-strategy) — How to size, structure, and lease a Class A office for a hybrid workforce.
- [**Lease vs Flex**](/topics/lease-vs-flex) — When premium flex (coworking, [managed office](/glossary/managed-office)) beats a conventional Class A lease — and vice versa.
- [**Lease Renewal Strategy**](/topics/lease-renewal-strategy) — How to negotiate a Class A [lease renewal](/topics/lease-renewal-strategy) — leverage, timing, and the relocate-vs-renew test.

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Citation: Source: Class A Atlas (https://classa.info/glossary/termination-option), updated 2026-04-01T00:00:00.000Z.