How to Secure the Best Renewal Terms in Today’s Market
By Chris Rohrer, Broker & Pete Kostroski, Broker | Rokos Advisors
Lease renewals rarely get the spotlight, but they’re one of the most important moments in a company’s real estate strategy. In today’s market—where vacancy is slowly rising, costs are stabilizing, and new development has slowed—renewal negotiations can be a prime opportunity to create savings and flexibility without the disruption of a move. The key is starting early, knowing your leverage, and negotiating beyond just the base rent.
Start Early to Create Leverage
In today’s environment, landlords are motivated to retain quality tenants, especially as vacancy levels rise in select submarkets. That gives tenants more room to negotiate—but only if they understand where the value lies. Market rent data, recent deal comps, and operating expense benchmarks are all critical in determining whether your renewal proposal is truly competitive.
Still, the best renewal outcomes rarely hinge on rent alone. A strong renewal should address total occupancy cost and business flexibility, not just the rate per square foot. When evaluating offers, focus on:
Tenant Improvement Dollars: even modest refresh allowances can modernize your space and enhance employee experience.
Free Rent: helpful during transitions, renovations, or business shifts.
Expansion or Contraction Rights: build in flexibility if space needs change.
Operating Expense Caps: adds predictability over the lease term.
Term Length: balance rate security with flexibility for future decisions.
Each of these factors impacts your long-term cost and operational agility—and can make a renewal more valuable than relocating to new space.
Don’t Default to “Good Enough”
Too often, tenants simply renew under existing terms because it feels easier than re-evaluating the market. But auto-renewals rarely yield the best economics. Taking time to assess your current deal against new listings—or even requesting proposals from comparable properties—keeps your negotiation grounded in reality. In many cases, landlords improve their offers once they see you’re actively weighing alternatives.
Renewals may not be glamorous, but they’re one of the most strategic opportunities in commercial real estate. Starting early, understanding your leverage, and negotiating creatively can turn a routine extension into meaningful long-term value.
Is your lease renewal approaching? Connect with Rokos Advisors to benchmark your rent, evaluate renewal options, and identify how current market conditions can translate into real savings for your business.
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.