Your landlord sent you a lease renewal notice. Maybe you love the location. Maybe moving feels like too much hassle. Maybe things are busy and it's just easier to say yes. I understand all of that — and I'm going to encourage you to slow down anyway, because lease renewal is one of the most underused opportunities a tenant has to meaningfully improve their situation.

Here's the thing about a lease renewal: your landlord wants you to stay. That's leverage. The cost and disruption of replacing a good tenant is significant for any landlord — finding someone new, negotiating new terms, potentially dealing with months of vacancy, funding a tenant improvement allowance for the replacement. You have more bargaining power at renewal than you probably realize, and most tenants don't use it.

Start by understanding what market rates actually look like for comparable space in your area. Commercial real estate markets shift. If you signed your lease five years ago when the market was different, your renewal rate may not reflect current conditions. An attorney or commercial real estate broker can help you pull comps. That data becomes your starting point.

Then think about what you actually want from this renewal beyond just the rent. Tenant improvement allowances — money from the landlord to renovate or refresh your space — are very common at renewal, especially for tenants with strong payment history. If your space needs work, now is the time to ask for a TI allowance, not in year three of a new term.

Also revisit the lease terms themselves. CAM caps, maintenance responsibilities, assignment rights if you ever want to sell your business, exclusive use protections — all of these are negotiable at renewal. The landlord's renewal offer is a starting point, not the deal.

And if there's a preset renewal option in your existing lease with a pre-set rate formula, read it carefully before assuming it's favorable. Those formulas are written by landlord attorneys, and they don't always age well for the tenant.

BLG represents tenants in lease renewal negotiations. If you've received a renewal notice or your term is ending in the next 12 months, now is the right time to get us involved.