NNN increase by 3% per year

[Kwan M. Lee]

I recently purchased a commmerical building about 9 month ago. One of the tenant lease is about to end soon next 60 days. As landlord, I like to increase NNN by 3% per year (since the tenats NNN has stayed same last 5 years)

What do you think if the tenant will accept the renewal offer ????

(Part of renewal offer : I am replacing new carpet and water sealant about $10000 for free for tenant) 

[Nathan Gesner]

What do I think? I think you need to study your market. If you knew the market and the value of your property, then you would know the answer to your own question.

3% sounds reasonable. But what if the market has grown 3% for the last five years? That puts your tenant 15% below market and you're throwing money out the window.

Figure out what market rate is. Know the value of your property and the value of keeping an existing tenant. Act accordingly.