Printable checklist
Commercial Lease Renewal Checklist for Landlords
Most small owners start thinking about a renewal when the tenant mentions it, which is usually too late to compare options. Work through this from about 18 months before expiration. Notice methods, option terms and renewal rent are set by each lease, so confirm every item against the signed lease and have counsel review anything you send or sign.
1. About 18 to 12 months out: review
5 items- List every lease expiring in the next 18 months with its expiration date and any renewal option.
- For each, read the renewal clause: whether it is an option or only a right to negotiate, the notice period, how notice must be given, and how renewal rent is set.
- Calendar the option notice deadline and the date the option window opens.
- Review the tenant’s history: payment record, defaults, CAM disputes, insurance certificates and any open work orders.
- Confirm the current lease and every amendment are on file, and that the rent schedule on your rent roll matches them.
2. About 12 to 9 months out: decide
5 items- Decide the goal for each tenant: renew as is, renew with changes, or plan to re-let the space.
- Check market rent with a broker opinion or comparable listings, noting that asking rents differ from rents actually achieved.
- Estimate the cost of vacancy: downtime, tenant improvements, commissions and free rent, against the cost of keeping the tenant.
- Open the conversation with the tenant and learn what it needs before making any formal offer.
- Ask your lender whether any renewal needs approval, and your accountant about the tax effect of any concessions.
3. If the tenant exercises an option
5 items- Confirm the notice arrived by the deadline and by the method the lease requires.
- Confirm any conditions to exercise are met, such as no uncured default.
- Work out the renewal rent by the lease’s method: a stated figure, a percentage increase, a market rent process or an index.
- Confirm the renewal term, any further options and what else carries over.
- Acknowledge the exercise in writing and calendar the new dates.
4. If you negotiate a new term or an extension
6 items- Agree the term, the base rent and the escalation method.
- Agree the expense structure (NNN, modified gross or gross), any base year or stop, caps and exclusions.
- Agree any tenant improvement allowance, free rent or other concession, and how it is repaid if the tenant leaves early.
- Agree renewal options, the security deposit and any guaranty.
- Check use, exclusivity, signage and co-tenancy terms against the other leases in the property.
- Have counsel draft or review the amendment or new lease.
5. After signing: update the records
6 items- Save the signed amendment and the prior documents together in the tenant’s file.
- Update the lease abstract, the rent roll and the rent schedule with the new dates and amounts.
- Update the CAM share, caps, exclusions and any base year on the tenant’s record.
- Adjust the security deposit if the lease requires.
- Request a current certificate of insurance and confirm it meets the renewed lease.
- Calendar the new critical dates: next option window, notice deadline and expiration.
6. If the tenant is not renewing
5 items- Confirm the notice of non-renewal was given on time and in the form the lease requires.
- Schedule the move-out walk-through and list the surrender conditions.
- Plan the deposit reconciliation and any final CAM true-up.
- Prepare the suite for marketing and update the vacancy plan.
- Remove the tenant from recurring billing and reminders on the move-out date.
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- Commercial Lease Abstraction ChecklistPrintable checklist
- Commercial Lease Renewal Checklist for LandlordsPrintable checklist
- Commercial rent roll templateSpreadsheet template
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