Don’t Sign That Lease Renewal Until You Read This
By Chris Rohrer, Broker & Pete Kostroski, Broker | Rokos Advisors
For many business owners, a lease renewal feels like the obvious path. You’re already in the space. Your team knows the layout. It’s convenient. But convenience can be costly — especially if you’re not negotiating your renewal with the same level of scrutiny you’d apply to a new lease
In today’s market, treating a renewal as a formality is one of the fastest ways to overpay or end up locked into a space that no longer fits your business.
Before you sign on the dotted line, here’s what you need to consider — and what many tenants overlook.
You Might Be Paying More Than the Market Rate
Landlords often count on renewal tenants not shopping around — and that means they have little incentive to offer competitive pricing. If you haven’t benchmarked your current rent against today’s market, you could be leaving money on the table. Even a slight drop in market rates can translate to significant savings over a multi-year lease. And even if you don’t plan to move, knowing your options give you leverage.
You’re Probably Not Getting the Same Concessions
New tenants often receive generous incentives — tenant improvement (TI) allowances, free rent period, and flexible terms. Renewal tenants? not so much. Unless you ask for it—and negotiate it—your landlord may not offer any improvements to your space, even if the property has aged, your needs have changed, or the building is undergoing upgrades for other tenants.
Your Business Has Likely Changed Since You First Moved In
Your headcount, workflow, or customer-facing needs may be different than they were five or ten years ago. That matters. Is your current space still the right size? Is it supporting productivity? Culture? Growth? A lease renewal is the perfect time to re-evaluate whether your square footage and layout are still aligned with your goals — or if you’re paying for space you no longer need.
You Have More Power Than You Think
The biggest mistake tenants make during renewals? Assuming they don’t have negotiating power. Landlords prefer to keep reliable tenants — vacancy is costly, and turnover comes with risk. Even if you want to stay, signaling that you’re exploring options opens the door to better terms. Think improved lease flexibility, TI dollars, OpEx caps, or updated renewal language.
Timing Is Everything
Start renewal conversations early — ideally 12-18 months before your lease ends. The more time you give yourself, the more leverage you have. Wait too long, and you may find yourself renewing under pressure, without the chance to explore other options or properly negotiate terms.
A lease renewal isn’t just a checkbox — it’s a critical opportunity to renegotiate, realign, and make sure your space continues to serve your business well. Before you renew, make sure you’ve asled:
Are we paying market rate — or more?
Is our space still the right size and layout?
What incentives or upgrades should we be asking for?
What are our other options, and how do they compare?
At Rokos Advisors, we help businesses navigate lease renewals with strategy, not guesswork. Whether you’re planning to stay, expand, or consider a move, we can help you understand your position — and negotiate with confidence.
Lease renewal on the horizon? Talk to Rokos Advisors before you commit.
Let’s make sure you’re not leaving money or flexibility on the table.
Rokos Advisors is an award-winning Minneapolis - St. Paul based commercial real estate/tenant representation firm specializing in helping businesses find the perfect office or industrial space for their company.