Renegotiating leases during Due Diligence
Hey BP!
How common is it to renegotiate warehouse leases during due diligence? And how common is it to put a property under contract while only intending to close IF someone is able to renegotiate and extend leases? Not saying I would try to be discrete about this as a buyer... more so wondering if sellers ever have an appetite to allow potential buyers the chance to extend leases before closing.
Some background here- I'm a new industrial investor who is in fairly deep talks to acquire a small warehouse. It has two tenants occupying 6,000 sq ft total. They have 2 years remaining on their current leases, and this deal would be much more desirable to me if I was able to extend those leases each by a few years.
What are your thoughts? What other details, if any, have I failed to consider?
Thank you!