Including a Right of First Refusal (ROFR) provision in a lease or other real estate contract is significant since a holder of such ROFR has essentially locked in a future right to exercise an option to purchase the property and, thus, protect its investment in the real estate, including all physical improvements and any goodwill developed relating to the site.
Under an ROFR, the owner of the property agrees in advance that if, in the future, it decides to sell the property, the holder of the ROFR has the first right to accept or reject any such offer.
