I am renewing a commercial lease with an existing tenant. Their 5-5 lease will expire this year. I intending to offer a new 5-5 lease with similar rent increase rates as the past 5 years.
I started looking at LoopNet to see what current commercial rent rates are and the $/SQ/YR is about half to 2/3 what I am asking when I factor in property tax and estimate for insurance.
LoopNet asking rents are usually gross or NNN without your tax and insurance pass throughs, so that half to two thirds gap is often apples to oranges. Get 3 recent signed comps for similar SF space and price off those, not listings. A 5-5 with the same bumps as the last 5 years is fair if the tenant is solid, but I would trade a slightly lower starting rent for stronger annual bumps and a personal guarantee if you can get it. Hope this helps.