What occurs during a "lease rollover"?

During a lease rollover, the existing lease agreement is renewed for the current tenant. This means that the terms and conditions of the lease are continued beyond the original expiration date without the need for a new lease agreement to be crafted from scratch. This is typically seen in commercial real estate scenarios where tenants seek to extend their occupancy of a leased space, often under the same terms as the initial lease. This process provides stability for both the landlord and tenant, allowing the tenant to remain in the property and the landlord to retain a reliable occupant without the disruptions of seeking a new tenant.

In this context, the other options relate to different scenarios of lease management. The initiation of a new lease with a different tenant involves finding a new occupant for a space, which does not apply to lease rollovers. The expiration of the lease with no further obligations implies that the tenant vacates the property entirely, which would preclude a rollover. Lastly, an automatic transition to month-to-month tenancy describes a different dynamic in lease agreement management, which occurs under distinct circumstances, usually after a lease expires but is not specifically about a lease rollover scenario.