Need advice for a small restaurant in Canada negotiating 5 year lease agreement
So I'm running a small restaurant in North Vancouver, B.C., Canada. Our lease is set to expire on May 31st, 2022 so they contacted us 6 months to new our lease and set new terms. Everything is to remain the same except for the increase in price. I'm just wondering if these are standard increases or if theres room for negotiation. 

Year One				$51.00 ​/sqt (Keeping the same for the first year as it currently is)

Year Two				$53.00 /sqt

Three			$55.00 /sqt

Four:			$57.00 /sqt

Five:			$59.00 /sqt

Would appreciate any insight.
[{"id": "hq675um", "text": "3-4 % increases per year are very common in my market (although I am in the USA).  There is always room for negotiation. Is your building a stand alone restaurant or are you located in a multi tenant shopping center? How are the vacancies around where you are located. How has Covid impacted your business? Has your business ever been shut down because of the government thanks to Covid? The answers to these questions will give you some insight into how much negotiating power you may or may not have.", "replies": [{"id": "hq6fjc9", "text": "Our restaurant is on a major road, considered to be a tourist area and we have many individual shops around us. I believe many are owned by the same landlord though. There have been some vacancies due to covid but we haven't had to shut down. Those vacant places haven't been filled for a few months.", "replies": [{"id": "hq6k9ri", "text": "Assuming you\u2019re talking about LL, maybe check out those vacant spots and see what they\u2019re asking for in rent? I\u2019ve noticed them to be vacant for quite a while.", "replies": [], "depth": 3}, {"id": "hq6p2di", "text": "I would door knock and find out what your neighbors are paying. Definitely push back. With inflation the way it is it's not surprising seeing rental steps, but it's surprising to see major starting rental increases right now, particularly if traffic numbers are down (international tourism areas and those with a material office customer base right now are down more than regular strip centres). It's a business negotiation, but from my experience rents are roughly 20% down - flat vs. 2019 levels.", "replies": [], "depth": 3}, {"id": "hq6q92f", "text": "I do believe this can be \"key\" to some negotiating power for you. If there is vacant space that hasn't been filled for a while, you can try to get a better deal. You could try this: 3% increase but then the rate stays the same for the next 24 months, then 3% bumps for years 3, 4 and 5? Just a thought....or...since their bumps are closer to 4%, ask to lower them a little bit (closer to 2.5-3%).", "replies": [{"id": "hqbjpdq", "text": "Thank you to the LL who downvoted this answer...", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hq67jfp", "text": "Ask for tenant improvements (paint or flooring) and/or free rent. You might be able to get 1 month free a year.", "replies": [], "depth": 1}, {"id": "hq69bd8", "text": "Do you have an option? Is $51 current market rate there? Assuming $51 is fair market rate, I would try to negotiate $1.50 increase. I'm in Toronto, and we usually do closer 3% or so, on a market rate, 4% is quite aggressive.", "replies": [{"id": "hq6g1tf", "text": "I'm not sure compared to other places but we're located on one of the biggest streets in North Vancouver which is considered a tourist area so we've always had higher rent.", "replies": [{"id": "hq6i73r", "text": "you might consider asking for an option for the future.  \n\nIE if you decide this rental increase is fine, say \"hey thats fine but I'd like a 5 year option at the same increase amount\".  That gives you a better backstop to negotiate 5 years from now and if rental rates shoot you are protected somewhat from that.", "replies": [], "depth": 3}, {"id": "hq838iy", "text": "Also consider what your sales are, if you are a draw for the landlords building/center and if these rent numbers make sense for you. You can always negotiate and should definitely try but also don't lose the spot.\n The escalations every 2 years are a good idea although ll can probably command yearly escalations in a good location and with inflation so maybe try to get them lower or after a few no's from the LL ask for something else. Maybe ask for 1 or 2 months free rent for renewing ?  A smart ll will know a higher rent and escalations are WAY more valuable than giving u 1 free month.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hq6ahdc", "text": "Considering inflation is 6 - 10% (and contractor pricing...i.e., the people who maintain your building....is rising even faster)...a 3.50% increase seems generous to me.", "replies": [], "depth": 1}, {"id": "hq6qt38", "text": "3% annual increase is standard.  Adjust numbers to reflect.", "replies": [], "depth": 1}, {"id": "hq7fovp", "text": "Given current and projected inflation the increases are not bad.  They are more than you would have seen pre-COVID, but you also had 2% inflation pre-COVID.   If you are worried that inflation will fall back to 2% in the next 5 years, seek a shorter term (2-3 years) with an option to extend (2-3 years more).", "replies": [], "depth": 1}, {"id": "hq7o21k", "text": "Absolutely counter.\n\nI have managed over 750 different commercial and retail leases across Canada and the US. A one time 3-5% increase at renewal term can be ok if the center is well kept and occupied, but if there are vacancy concerns, I would only agree to flat rent. If the center is well occupied and maintained well, then an increase may be ok, but push for a one time 5% increase and not annual rent bumps.\n\nAlso ask for a 5-year renewal option as well and secure that rent rate now. That way, you have control over your term length and rent obligation. Do 5% bump now and another 5% bump at option.", "replies": [], "depth": 1}, {"id": "hq86qo2", "text": "Linking rent to turnover could be a good way to manage increases if the market is looking uncertain and with empty units staying vacant that\u2019s not a sign of booming business albeit you aren\u2019t retail less customers on the high street is less footfall past your door. You could propose that rent increases are only implemented if your turnover increases too. You can even suggest that should turnover fall a rent decrease would be appropriate. Some landlords are quite resistant to this but many are understanding that it\u2019s a fair system. A Google search on: \u201cretail rent linked to turnover\u201d should produce some useful articles for more info. A midway break clause is a good idea too, allowing you an out if you need it and a pretty standard inclusion for tenant protection.", "replies": [], "depth": 1}, {"id": "hqcwukq", "text": "I would propose a flat rate, 10% increase every 5 years. And if they come back with an annual increase, propose 2%", "replies": [], "depth": 1}]