Lease negotiations set income quality and tenant relationships for years or decades. Landlords who know which points matter can protect value and still land good tenants.
Key Terms
- Rent structure and escalations
- Tenant improvement allowances
- Operating expense and tax stops
- Options: Renewal, expansion, termination
Landlord Strategies
Balancing concessions against long-term value starts with knowing what the tenant needs and what the market will bear. A well-structured deal meets the tenant's needs without giving away the landlord's economics.