Tweet
A prospective commercial tenant is after a 15 year lease with a 15 year ROR. Normally we've dealt with shorter 3x3 (or so) leases so have simply negotiated a market rate on a two year basis during the term.
Given this term is long, we were thinking of a CPI or 2% whichever is greater review every 2 years, however do you think a market review at the 8 year mark (mid-lease) with a hard-ratchet might be a worthwhile potential addition? How hard has it been to get this across the line with tenants based on your previous experience?
Given this term is long, we were thinking of a CPI or 2% whichever is greater review every 2 years, however do you think a market review at the 8 year mark (mid-lease) with a hard-ratchet might be a worthwhile potential addition? How hard has it been to get this across the line with tenants based on your previous experience?