negotiate 10 year commercial property lease

[Joseh Orobello]

Hello bigger pockets community,

I was hoping to get some advice. I own a commercial property in which my teanant is  asking for a 10 year extension. The tenant is great and the rent is always on time.  There business is thriving and an asset to the neighborhood.  The vacancy in the area is maybe 3%.  There is alot of investment in the area. There is currently 5 years left on the current lease. I need advice on if I should give the extension or i should wait for the lease to be on its last year. If i should give the extension, how would i go about figuring a proper increase per year.  I dont want end up killing my cap rate being locked into a bad deal.  Taxes and insurance seem to keep going up,also there are up coming repairs i will have to address as the property ages. 

Any advice and suggestions would be greatly appreciated