How to interpret rental lease wording on an offering memorandium (office building)
How would you interpret a current lease that says "3% annual / two 5 year" under "increases/options"? The current lease ends in 2026.

My interpretation is: current to 2026, the lease will automatically go up by 3% every year. In 2026, the tenant has an option to extend the lease by 5 years, subject to the 3% annual increase, starting with the 2026 rent. Then again in 2031. 

My question is:

\- Does the landlord typically have a right to adjust the rent (for example to match market rent) during lease renewal?

\- Does the 3% annual increase apply to the current lease?
[{"id": "hvu2mlr", "text": "3% is yearly. Renewal rate is negotiated for new lease unless noted in the lease.", "replies": [], "depth": 1}, {"id": "hvuoiih", "text": "Whichever attorney put that into a lease worded in that way should be fired. Landlord can\u2019t modify the rent to market rate under any circumstances during a lease. The lease takes precedence over everything. The 3% likely covers the first/original term a as well unless specifically stated otherwise.", "replies": [{"id": "hvv17hf", "text": "haha it wasn't the actual lease, it was just an offering memorandum summarizing current rent rolls and they probably tried to be succinct. Thanks for your input!", "replies": [{"id": "hvxub3j", "text": "Yeah I agree. Using percentages like that is useless brain damage. I prefer using real numbers and renewing at fair market rents.", "replies": [], "depth": 3}, {"id": "hw5kgdv", "text": "Ohh well in that case it means 3% annual increases and two options at 5yrs each. Happy to help", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hvv2lhs", "text": "Just means that there are 3% annualized increases for the original lease term (ending in 2026) and the tenant has two renewal options for 5 years apiece subject to a newly negotiated rent at the time of renewal unless otherwise noted. A new annualized rent increase rate will probably need to be negotiated at the time of renewal.", "replies": [], "depth": 1}, {"id": "hvvk7jj", "text": "Get an attorney. This is kind of basic commercial real estate contract stuff that if it\u2019s outside your wheelhouse, get someone to explain it to you, not Reddit.\n\nNo one here knows what else is in this Offering Memorandum/LOI and since the actual lease hasn\u2019t been negotiated, no one knows what your final lease document will look like.", "replies": [], "depth": 1}, {"id": "hvvyjy5", "text": "My interpretation would be 3% annual increases should apply to the current rent then two 5 years options. Since the rent in the options isn\u2019t specified I would infer that the 3% annual increases would still apply.  The LL could argue against this but you should have the stronger case, since the Lease doesn\u2019t mention adjusting the rent to market value.", "replies": [], "depth": 1}]