Does a tenant's lease renewal option survive when the commercial building they occupy is sold?

Yes. A lease, including any properly documented option to renew, is a property interest that runs with the land, so when the building is sold, the new owner takes over as landlord subject to the existing lease and all of its negotiated terms, renewal options included. The tenant doesn't lose the option, and doesn't need the new owner's separate agreement to exercise it, as long as the tenant follows whatever notice and timing requirements the option itself sets out.

The detail that catches new owners off guard is that a renewal option often locks in specific terms, sometimes a pre-set rent or a formula for determining it, rather than current market rates, so a buyer underwriting future income from that space needs to factor in what happens if the tenant renews on those pre-agreed terms rather than assuming the space will simply come back to market. Missing or misreading a renewal option during due diligence can mean a significant gap between projected and actual future rent.

Buyers should review every lease specifically for renewal options, their exercise deadlines, notice requirements, and rent terms, as part of due diligence, rather than relying on the rent roll's summary alone.