Commercial Lease Advice
We just acquired a large 6 unit by the Seacoast in NH. The property is in a very desirable location, walking distance to downtown, shopping, comedy clubs, bars (nightlife)…etc. This building is "Multi-use" so half is commercial and half is residential. The Residential units flew off the shelves when I had to turn them over, we have a commercial tenant that knows one of the other commercial tenants is going to be removed at the end of their lease. I don't have a problem with a commercial tenant wanting to expand their business, I actually encourage it, they make money, we make money. It's a plan without flaws haha…Anyway we are negotiating lease terms and she wants an "option to re-new" at the end of the lease. I don't like that term because it gives the tenant power over the Landlord. With a commercial tenant is it normal to have an "option to renew" clause in the lease?
Also with this certain unit, it’s a very large unit 2800+ square feet, It would easily be converted to a 3, 4 or even 5 bedroom. Not that I would initially do that but with the "Option to re-new" the would take that ability for conversion out of my hands for multiple years. Thanks guys let me know