Paying tenants for rent increase

[Igor Messano]

Hi everyone,

Thought came to mind and was wondering if this is ever done, and if so what is the good and the bad. Let's say I have a commercial property with a couple of small retail locations (300 sqft) where rents are significantly below market. Is paying a tenant for the right to increase rent a thing? I know you can pay to buyout the lease. But if a tenant is a good tenant has anyone ever though about buying the lease but essentially signing a new lease with the same tenant for market rent?

The thought is I could keep the same good tenant instead of gambling on an unknown tenant, the tenant gets continuity to their business instead of finding a new place for likely similar rent, and I get to increase my NOI for sale or refinance purposes.