Commercial Lease Renewal Terms (rental, landlord, location, 4%)

[Lynn E]

I have been at my current location 30+ years. I have been offered a 10 year renewal that will keep my base rent unchanged for the first 5 years, then my landlord wants a 10% increase for the remaining 5 years. Does this seem reasonable? He is willing to do 4% year 6, 7% years 7 & 8, the full 10% years 9 & 10 - all additional percentages are based on the original (current) base lease.

[ZackRyder]

Sounds awesome. If you feel you will still be in business for 10 years and the rent is affordable and comparable to other rental spaces in your area I'd take it.

[AZ Manager]

Sounds reasonable but I also don't rent retail space. Really is a personal opinion thing though with a ton of variables.

[oregonwoodsmoke]

That's better than most offers. Usually, a commercial landlord would want a 10% increase right off the bat for all 10 years.