long term commercial lease
We literally inherited a commercial tenant. He wants to renew with the following terms. his wording...(sic)
"5 and 4 5 years options"
(we'd be more comfortable with 15 years)
"the lease to be transferable in case i sell the business in the future"
(we don't want to be stuck with an unknown new tenant)
"maintenance outside on you guys and insaid on me exept if rain insaid you guys will take care of it"
(we're okay with this)
"i am not too comfortable with idea of yearly increase if you like we can do like mr ron said - 2 percent time 5 that is 10 to 12 percent every 5 years total of 50 60 percent incease in the and of the tearm"
(we want 3% per year or a CPI adjusted annual increase)
He is a good tenant. Pays on time complains very little. Rent is a little below market, but there are many empty commercial spaces in our town. The town is a bedroom community near San Diego. The space is right on the corner of the best intersection in town.
The sticking point is mostly the rent increases. He wants 10-12% adjusted every 5 years we want 3% or CPI indexed every year. This is significant over a 25 year span.
Are we being too greedy or is he trying to "get over" on us? Are we missing anything in his other requests?
Thanks for looking.