What is the term of a typical lease?
How is the rent quoted?
What is the tenant's option for termination or break?
Typically, the tenant does not have the right to terminate the lease.
Does the tenant have the option to renew? What is the length of the typical option?
Yes, options to renew are common, usually 5 years.
How is the rent determined at renewal?
Typically, rents are determined by market rent at renewal and are generally negotiated 6 to 9 months in advance of lease expiration.
What is the typical rent-free period, if any?
Usually 3-4 months on a 5 year lease.
What is the typical rent escalation?
Annual rent bump of 1%-2%, on average.
Does the tenant have the right to sublet?
Typically to a related/subsidiary company.
Otherwise, sublets require the landlord’s written approval.