Commercial tenant - lease ending want month to month

[Jason K]

I have a commercial office building and my biggest tenant is now looking to buy their own building. They just now started looking and their lease is up and the end of July.

It will be almost impossible for them to find and buy another location in 25 days, especially since we live in a small community and there is a total of 15 commercial listings for sale. Then they would have to enter escrow and than probably remodel the building to fit their needs.

Since I don't think they could make the deadline due to the # of days left and they have a pretty big operation, I have feeling they are going to ask to go month to month.

Would you hold your guns and only offer a 1 year lease. It really straps me in terms of seeking additional financing for new property when I can't show the lender leases for my current rental property. However the possibility because of the size of their operation the building and the economy, their space could sent vacant rendering me no rent.