Landlord Trying to Renew Lease with a 30% Increase

General
1

Hi FORUM

I’m facing a challenging situation with my landlord, who is trying to renew our lease with a staggering 30% increase. We’ve been great tenants for nearly 18 years, and this increase is completely unrealistic for us. It feels like they’re preparing to “flip” the shopping center and are trying to jack up the rent as high as they can.

To make matters worse, a franchise of a business that mirrors my exact business model just opened 6 minutes down the road, which is adding more pressure on us. The landlord did go down a couple of dollars, but that still leaves us with a 27% increase. They also offered to reimburse us for a rooftop HVAC unit we purchased, but only if we commit for another 5 years.

He’s given me until August to gather more information about our sales, but there’s a penalty if I don’t comply.

Does anyone have tips on negotiating in this situation? I’d really appreciate any advice or strategies that have worked for others… :unamused: :unamused:

2

That is a tough situation, especially after 18 years of being good tenants. When negotiating, try to highlight your long-term loyalty and how sudden increases could impact your business. You might also want to gather data on similar rents in the area to strengthen your case. If possible, consider negotiating for a smaller increase with a shorter lease term to give yourself flexibility.