A right that may be given to a tenant to continue in the leased space at the expiration of the current lease, on specified terms and conditions. A renewal is a new lease agreement. Contrast to an extension.The difference is important because
1. Oral agreements to extend a lease may be enforceable under the Statute of Frauds, but oral agreements to renew may be unenforceable unless there is some writing evidencing the agreement.
2. A previously agreed upon rental rate for a renewal would indicate adjustment of the base period for the tenant's share of operating expenses to the renewal year, while the same rental rate for an extension would indicate use of the original base year. If the tenant must pay a pro rata share of building operating expenses in excess of what they were in year 1 (first lease year) versus what they were in year 6 (first renewal year), it could amount to a significant amount of money each month.