Trying to decide between new lease and renewals - what to consider?
I am curious about what factors to consider when trying to decide between renewing the lease with existing tenants or signing a new lease.

1. Tenant credit worthiness
2. Cash flow impact
3. Lease term
[{"id": "gbsu5o1", "text": "4. Lease Type (ie. Net, Gross)\n5. Lease structure (ie. Rental escalations, renewal options)\n6. CapEx (Ie. TI allowance and buildout, rent concessions)\n7. Type of tenant and what industry (ie. Retail, flex, office)\n\nJust to name a few", "replies": [], "depth": 1}, {"id": "gbsuep5", "text": "I pretty much always re-sign if they have paid on time in the last 12-24 months. Not worth the risk, IMO.", "replies": [{"id": "gbtkl11", "text": "I agree, the devil who you know is better than the devil who  you don't know.", "replies": [{"id": "gd5n403", "text": "This so much!", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gbsvymi", "text": "I would just renew unless the potential tenant is a large credit worthy tenant replacing a mom and pop/independent tenant, where you could get a noticeably better cap rate/cash flow.\n\nThat or if the existing rents are vastly below market and the new tenant can pay market rent vs the existing tenant who is just scraping by.", "replies": [], "depth": 1}, {"id": "gbtgke6", "text": "Right now? Did they pay on time, did they cause problems? Yes and no gets a renewal. \n\nDon't gamble getting a dream tenant when you can have a decent one.", "replies": [], "depth": 1}, {"id": "gbtjscq", "text": "It really depends on your goal for the property.   If you are setting the property up for sale you might want to trade up on the rent/credit/term and be willing to take the downtime and capital hit needed in the short term.    \n\nIf you are a long term holder then you need to weigh the cost of downtime and capital against the increased cash flow of a new tenant (net effective rent less downtime).  You also need to consider any \u201cuplift\u201d the new tenant might have on your other tenants (for example if it is a retail property, will the new tenant drive more traffic to the property making other spaces more valuable).   \n\nCredit rarely comes into play on renewals (except in comparison to a new deal) at long term assets as you are typically not taking on more risk (more capital invested).   Your only remaining risk should be downtime if they fail, which only hurts you if you had a better credit tenant option that you walked away from to renew.\n\nRenewal is your best option 9/10 times, but it\u2019s always situation dependent.  In the current environment I\u2019d be hard pressed to kick out a tenant who wanted to renew.", "replies": [{"id": "gbuzfz8", "text": "\\^This", "replies": [], "depth": 2}], "depth": 1}]