Yearly Increase Standards
Hello,
There is a chance I may be acquiring a mix conforming use property that includes a duplex and a small commercial shop being used as a beauty salon. The tennant wants to sign a five year lease. Her last landlord charged her two years at a fixed rate and increased the third year by 5% (although never collected the increase out of the goodness of her heart.) I will be creating a new lease and wondering the standard projection/markup for each year that passes?
Thanks!
If you can get a five year lease with an annual 5% escalation, I think you are doing well -- but I don't do commercial property.
You may get a better response in the commercial forums.