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, 5-7 years
How is the rent determined at renewal?
Fair market rent, negotiated 6 to 12 months in advance of lease expiration.
What is the typical rent-free period, if any?
A rent-free period is not typical but 2-4 months for a 5-10 year lease is most common.
What is the typical rent escalation?
Annual rent escalation of 2.0% to 2.5%, on average.
Does the tenant have the right to sublet?
Typically to related/subsidiary without landlord approval. Third parties are considered with landlord approval.