Committing To A Longer Haul



Officially speaking, it’s the state or quality of being dedicated to a cause, activity, etc.

Historically, many Class B industrial tenants have occupied their buildings for 15-20-25+ years.

Looking back, while you can see their commitment, they’ve typically only renewed their leases for 3 to 5 years at a time.

Today, though, those tenants are not just mentally committing to these industrial spaces.

Tenants are seeing fair market value (FMV) rents go way up, and that they could be facing 30 to 100% rent increases at lease expiration. As a result, many are beginning to propose renewals for 10 or more years, attempting to lock in a predictable rate for the future.

It’s early in this trend, but we’re watching to see if requests for early extensions become a larger movement or if most will wait and hope their position improves by the time for renewal.

Want to talk more about this trend? Contact us.

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