Advice needed on a industrial building lease for manufacturing business
Hi ,I own and operate a manufacturing business down in Louisiana. 
I currently rent my 7,200 sqft building for $6.67sqf/year, the building next door to me is freeing up little less square footage than my current building (same landlord), 

I expressed my interest to the landlord (we have a good relationship) to expend and after few back and forth their offer is a new lease for the 2 buildings (my current one and next door) for $8.21sqft/year and a yearly increase of 10% after 5 years. 
The new building I’m seeking has no amenities whatsoever, an electric panel and nothing else.
I’m offended by that offer, should I? Or is it a common lease in the commercial world.

Thank you
[{"id": "hwb60d1", "text": "How much term is left on your current lease? Also, how long would the new term be? \n\nWhat part of Louisiana? Happy to pull up local asking rates to see if it\u2019s on par with market.", "replies": [{"id": "hwb6jkz", "text": "Renewable every 2 years for the next 8 years\nNew term would be 5years renewable.\nI have to say the slight difference is that with the new lease he would provide us 10 parking spot on his lot for my employees \nI\u2019m in New Orleans.", "replies": [{"id": "hwboqqu", "text": "Rates have gone up in the last few years for industrial space.  It seems to me though that if you have term left on your original lease the rate should stay as scheduled, but it will be higher for the new space because rates have gone up since you signed your original lease.", "replies": [], "depth": 3}, {"id": "hwk7x4k", "text": "Ah I see So is the other poster mentioned rates have definitely gone up which is reflected in that expansion space. That being said the landlords obviously trying to mirror the lease so that commencement and expiration is in line with one another. Typically when we do that by me we will  Map out the equity you have in your existing lease and account for any increases which may be set in stone, say if it\u2019s a 2% inc every two years or if it\u2019s FMV increase. If the options to extend our below market we will look to meet the landlord halfway. It looks like he\u2019s just trying to bring you up to market. So if there is time left on your original lease you would want to be careful not to lose that equity.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hwbg1w0", "text": "If you are going up to around 15,000 sq ft, normally the rate would be lower than the size you're in now, all other things being equal. It would be worth your time to at least look on Loopnet to see if something available is a better fit and worth the cost of relocating your business.\n\nYou could hire a broker but paying their commission if you don't move may be a bit tricky, since the Landlord will probably object if you've negotiated rates without a broker.", "replies": [], "depth": 1}, {"id": "hwchb0c", "text": "In Seattle you'd be paying at least triple that rate.\n\nRates for industrial have gone up nationwide.", "replies": [{"id": "hweyy10", "text": "Good to know", "replies": [], "depth": 2}], "depth": 1}, {"id": "hwdqdc5", "text": "10% annual increase seems wildly high unless you are significantly under market rate and they are just bringing you up. If not 3% annual increase is standard", "replies": [{"id": "hwez74j", "text": "I\u2019m not a broker but from what I looked at in the same part of town, Apple to Apple $6.5-$7 sqft annual seems to be the range", "replies": [], "depth": 2}], "depth": 1}, {"id": "hwek0x8", "text": "If your not a broker it\u2019s going to be hard to look up comparable to get a full picture on rates. You might be leaving some money on the table. Honestly the $8.87 sounds pretty reasonable if you had that rate for 3-5 years. 2% increase per year is very fair, most tie to the CPI and that looks like it will be almost that much for this year.\nHow big is the electric service for the new building? Does it have a bathroom or watercooler? Does it have dock high or doors tall enough for your intended use? If it does have dock high check the area during a hard rain to make sure it has proper drainage or functional pumps.", "replies": [{"id": "hweyun5", "text": "I know the building really well since I\u2019ve been next to it for 3+ years, it\u2019s safe and sound, no flooding, no bathroom but drain and city water ready to be tapped in, no dock height but big doors. Just 110v power but I don\u2019t need more, may heavy equipment will stay in the other building. It\u2019s barrens ready to be built like we want which I\u2019m fine with I just don\u2019t get why the overall sqfootage $ would increase if I get more space, and yearly 10% increase after 5years sounds crazy to me. But I\u2019m not well verse in the commercial estate world so who knows", "replies": [{"id": "hwgjler", "text": "2% increase per year for inflation is normal. Many people foresaw the market heating up and linked yearly increases looking to be over 7% for this year. If you are going to be doing improvements to the space ask for rent abatement as long as those improvements will improve the landlords space and increase his psf rents. \n\nOn the rent increase for your current space, your landlord is most likely way under current rents and is splitting the difference between the two while extending you out. Check current comparable rents in your area to confirm. But it sounds like you have a good owner who is actually doing you a favor imho.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]