Approximately two million commercial lease renewal transactions take place every year in North America. Whether a restaurateur is leasing commercial space in a strip mall, shopping mall, or in a stand-alone building for a restaurant business, he/she eventually will have to face a lease renewal negotiation with a landlord. Starting with the end goal in mind and planning far enough in advance will make this process much easier.
Most landlords push for a rent increase on a tenant's lease renewal. This is normal and something you should anticipate. Much can transpire in a 5- or 10-year lease term between when you moved in and when you need to negotiate a lease renewal. Negotiating a lease renewal is not an overnight process … this can take some time and involves a number of steps (as found in our book, Negotiating Commercial Leases & Renewals FOR DUMMIES, and as summarized below):