Commercial Unit & Leasing

[Mario Morales]

Happy New Year! I own a commercial unit, and I’m trying to determine a fair rental rate for the space. Do you have any suggestions on how to go about this?

The current tenant was already in place when I purchased the building, and their lease is set to expire in a few months. I’m unsure what kind of notice I need to give them—does it work the same way as residential leases, requiring a 120-day notice?

The lease agreement is quite vague and doesn’t outline responsibilities clearly. It even states that the lease “will repeat itself” but doesn’t specify terms like figures or percentages for rent increases. I’m considering consulting a lawyer to clarify these issues.

Two weeks ago, I reached out to the tenant via email to start a conversation and propose a win-win renewal, but I haven’t heard back yet. It’s a tax office, so I suspect they might be waiting to see how their business performs and the impact of technology before deciding.

Thanks in advance for any advice or insights you can offer!