Renewal Kings

1) Retain representation

It is important to understand that renewals are negotiations and having a broker preserves leverage, protects rights, advocates for better terms and prevents missing deadlines.

We will provide market comps, negotiation strategy, outreach to landlord/broker, cash-flow modeling, alternatives (relocation options).

2) Audit the existing lease and business needs

What we will review:

  • Key dates: lease expiration, notice of renewal/termination deadlines, option exercise windows.
  • Financials: base rent, escalation clauses, NNN/CAM pass-throughs, security deposit.
  • Rights: renewal options, expansion rights, sublease/assignment, exclusivity.
  • Obligations: repair/maintenance, insurance, permitted use.
  • Tenant improvements (TI), surrender conditions, and any outstanding landlord obligations.

3) Market analysis & alternatives

Why: negotiation leverage comes from knowing what comparable spaces rent for and what alternatives exist.

Actions we will undertake:

  • Runs comps (recent deals + current listings) for similar class, submarket, and size.
  • Calculate effective rent (accounting for concessions, free months, TI).
  • Identify 2–3 viable alternatives (relocate, expand, downsize, sublease)

4) Decide strategy & objectives

Pick the primary outcome:

  • Renew in place with better economics.
  • Renew but reconfigure (expansion or contraction).
  • Relocate (use as leverage).
  • Terminate / sublease.

5) Solicit renewal from the landlord (formal outreach)

  • Broker sends a Letter of Intent (LOI) or a formal email requesting renewal terms OR responds to a landlord offer.
  • If landlord sent a renewal offer, acknowledge receipt and set a timeline for response.

6) Evaluate the landlord’s offer vs. market

Compare:

  • Landlord’s proposed base rent, escalations, operating expenses vs. market comps.
  • Effective rent after concessions.
  • Non-financial terms (renewal options, assignment/sublease rights, TI, termination rights).

7) Counteroffer & negotiation

Tactics:

  • Lead with facts: comps, tenant’s legacy, alternative options.
  • Prioritize asks: put highest priority items first (e.g., fixed NNN cap, TI).
  • Trade concessions: give on term length for better TI, or accept small rent increase for more free months.
  • Use timing: exercise renewal window to create leverage (if your lease requires landlord to propose by X date, follow that calendar).
  • Keep negotiation documented in writing (LOI then term sheet).

8) Financial signoff & internal approvals

Before committing:

Confirm who will sign and any required corporate resolutions.

Provide final modeled total occupancy cost to decision-makers (rent + NNN + TI amortized).

Get partner/board/owner signoff per internal governance.

9) Legal drafting and review

Process:

  • Broker and tenant attorney agree LOI/term sheet.
  • Landlord attorney prepares amendment (for renewal) or new lease.
  • Attorney redlines for tenant protections: use obligations that are clear; remove or limit vague landlord duties; check indemnities, liabilities, insurance, default cure periods.
  • Verify all negotiated items are included (TI, abatement schedule, expense caps, tenant remedies).

10) Execution & delivery

  • Steps:
  • Collect execution signatures and required documents (insurance certificates, guarantor docs, estoppel certificates if requested).
  • Exchange fully executed lease or amendment and record key dates.
  • Obtain landlord’s agreed build-out schedule for TI, if any.

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