Lease negotiation during due diligence

[Todd C.]

Hey all—I'm a residential investor making the move to commercial after having a good experience with a mixed use property. I'm looking at a 3 unit industrial building with 2 tenants up for renewal within 2 years. As such i have a LOI in at a nice cap rate.

Obviously this deal is only as good if the tenants extend, so I'm curious what I can do during the due diligence period to either a) get them to extend and b) reduce my risk of vacancy as much as possible. Both tenants have 5-yr extensions and one has very favorable rates (nearly 50% below market NNN rates and is on gross terms).

Secondly, is there anything to do to help massage the very cheap psf tenant closer to market and/or to get them to NN or NNN despite them having an extension option (don't have leases yet so unclear what terms are in there)?Lastly, have you found banks willing to lend with such short terms remaining? Any help would be greatly appreciated!