Lease Option on Commerical property
Question Details: I have a commercial lease that's ending 12/09 with an option to extend for the next 5 yrs. My landlord gave me her proposed new lease that is including a rent increase of 75% and an additional 2100.00 security deposit. Current lease is at 1.50 per sq ft. My previous lease stated that the option rent will be set at fair market value. Other tenants in the same building have signed a lease at 2.00sq ft. within the last year. With today's economy, is my landlord being unreasonable and what is my next step? My business is located on Broadway in downtown Oakland, CA.
Business Law Answers
You did not mention what the other tenants recently paid. That would be a good indicator of "fair market value". Rent rates per square foot are down in most areas. This worth researching further before you sign at the higher rate. Please contact me if I can be of further assistance. Deborah Barron deborah.barron@lawbarron.com
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