Lease Renewal Negotiation
Intermediate English listening exercise ยท Negotiations
Transcript
Tenant: We have been in this space for five years and would like to renew, but the proposed rent increase of fifteen percent is significantly above the market rate. Landlord: The increase reflects the improvements we have made to the building, including the new lobby and upgraded HVAC system. Tenant: We appreciate those improvements. However, comparable spaces in this area are leasing at twenty-eight dollars per square foot. Your proposal would put us at thirty-two dollars. Landlord: What number would work for you? Tenant: We would be comfortable at twenty-nine fifty per square foot with a five-year lease. We would also like the option to sublease a portion of our space if needed. Landlord: I can consider twenty-nine fifty if you commit to a five-year term. The sublease option would require our approval on a case-by-case basis. Tenant: That is fair. Can we also include a cap on annual rent escalations at three percent? Landlord: Three percent annually is reasonable. Let me have our attorneys draft the amended lease.
Comprehension questions
- What is the proposed rent increase?
- What annual escalation cap is agreed?
- How long has the tenant been in the space?
- What term did the tenant propose for the lease agreement?
- What is the current rent proposal from the landlord?