Lease expiration rent question, commercial property
I own a restaurant business and rent my commercial property. My landlord is looking to sell the property, and I am interested in buying it, but right now he wants ~200% what it's worth and I'm not sure we'll be able to close the gap; I may have to leave (as the rent is high anyways). The 5-year lease expired at the end of April 2019. The lease renewal options are as follows:
- I can renew another 5-year lease at the same terms by notifying the landlord 3 months prior. I didn't do this, so I assume this is not an option.
- I can stay month-to-month at a 20% premium.
- At my landlord's option, he can add 1 year to the lease, under the same terms (rent increases 3% annually).
My landlord did not notify me the lease was expiring, nor did I notice. He did, however, notify me that rent would increase 3% starting in May (which it has every year). Does this mean he has elected the 1 year lease option? I have paid this first increase (as of May), does this mean I have accepted a 1 year lease term? If I were to leave this year (preferable for me if we can't agree on a much lower purchase price), it actually would be cheaper for me to pay the 20% premium monthly until I leave, rather than an entire year's lease at 3% increase until next April; I'm just wondering if this is an option or if I've forfeited this by paying the 3% increase and implying acceptance of the 1 year lease renewal.