Looking for suggestions from commercial property owners or comm. property managers on how they would like terms presented.
We are coming up on renewal for our commercial lease and our current term is 3yrs. The area is booming and a lot of brand new commercial space is being built that could potentially suit our business better and we don't want to lock ourselves into a 3yr term.
We've locked horns with the Property manager already on previous issues and they don't typically care to negotiate. We are sending our proposal for renewal to the PM and the Property owner directly. We are asking that the lease be set up as a 3yr term, renewable annually, in which we will notify the PM 90 days prior to the renewal date if we don't plan on renewing.
From the perspective of a property owner/Manager how would you like to see this presented? Any advice appreciated.
I would send it in a formal LOI, but if I was the landlord, honestly, I wouldn't accept those terms. You may have to present it with a letter that says it is mutually beneficial as the market is increasing. They may still not buy it, especially if they gave you any TI money or contributed to a build out. Good luck!
Thank you for the advice, hadn't thought about a LOI.