What negotiable aspects of lease terms impact rental prices?
Hi. I'm doing a study on impact of lease terms on rental prices for office, retail and industrial. 

What clauses or variations in lease terms leads to landlords adjusting rental prices?

How do landlords set renewal terms in the lease clause? 

 Looking for a landlord/owner perspective. 

TI, option to renew, termination clause etc.
[{"id": "gn4q4zq", "text": "The market is going to determine the majority of the lease terms based on supply/demand.\n\nI\u2019m not going to give someone a better deal rental deal based upon the option language or an early termination clause.\n\nTI can directly impact rental rates. If a specialized tenant wants a certain buildout, the landlord can provide that to the tenant and bill them back through a higher rate. On the same note, if a tenant wants to do the buildout themselves and take the space as-is, the starting rate can be lower. In the end, the landlord is going to look at the net effective rate over the lease term.\n\nThe problem with providing more TI for a higher rate is you are getting a artificially inflated rent. So, if that tenant leaves, it is going to cost you a lot of money to remove their specialized buildout and re-lease the space (and get you in trouble if they go bankrupt prior to the end of their lease term).", "replies": [], "depth": 1}, {"id": "gn4wv7a", "text": "It's always my preference to have cheaper rent for an introductory period, and have the renter do there own TI.", "replies": [], "depth": 1}, {"id": "gn7uom3", "text": "TIA - the ownership usually has a budget for this &amp; you want to make sure it\u2019s only spend on real improvements to the space. If you agree to $75/SF you want that going into the electrical, paint, floors etc. But the LL sets a budget for the TIA based on the space needs and market rent rate and term length. The 3 yr term guy gets a paint and carpet budget, full build LL needs at least 7 years.\n\nSecurity - how everything is securitized is the whole thing. What\u2019s the corporate credit? Are they going to stay in business? Is it a small company and the owner had a bankruptcy before?\n\nUse - is this the type of tenant I want? Is their business consistent with the character of the building and the permitted uses? \n\nRight to terminate - ok, tenant to repay unamortized leasing commission and pay back free rent and unamortized TIA. \n\nRenewal - fair market value renewal. The lease will escalate at 3% a year. If you want to have a fixed renewal rent, just increase your term length.\n\nFree rent - 1 month per year of term.\n\nRent - look at lease comps, the market rate.", "replies": [], "depth": 1}, {"id": "gnrc4cw", "text": "&gt;What clauses or variations in lease terms leads to landlords adjusting rental prices?\n\nNot sure exactly what you're asking.  The lease terms, not the market, building condition, etc..,  that most affect the rental rate are the length of the lease and the strength of the tenant \n\n&gt;How do landlords set renewal terms in the lease clause?\n\nThis is usually done in set increments with annual increases.  For example, a 5 year lease, with two 5 years renewal options with a 3% per year annual increase in base rent.\n\nMost landlords/owners want their property to be worth as much as possible.  This means long term leases from strong credit tenants or national chains.  A building leased to a CVS with 10 years remaining on the lease and two 5 year options is worth more than the exact same building leased to a local pharmacy at the exact same rate and exact same lease terms because CVS is a corporate guaranteed lease.  So all these empty drug stores on out-parcels, or where ever,  you see are still paying rent.  They have the right to sublease (usually), but their guarantee never goes away.  Hence the reason you can see some sitting vacant for years in good locations.", "replies": [], "depth": 1}]