Should I negotiate annual rent increases or periodic market adjustments?
Category:
Commercial Leasing – Property Owners
Both approaches have advantages depending on the property, tenant, and market conditions. Annual increases provide predictable income growth, while periodic market adjustments may better reflect changing economic conditions over longer lease terms.
The appropriate structure should balance income stability, competitiveness, and the long-term objectives of the investment.
Lease economics should support the property throughout the entire lease—not simply at the beginning.
