Tennant POV Qestion: Rent Increase Percent?
My small business (vanlife type vehicle conversions) is located in Northern California. We're (the business) located in the town of Oroville, which is directly impacted by the late 2018 Camp Fire. California's most deadly wildfire. In some respects, the town has been turned upside down. 

Anyways, we're coming up on our 1 year anniversary in business (October). The natural disaster has put a freeze on residential rent increases (I don't have a source and I don't know the exact legislation etc.) until Feb 2020. 

Our landlord is proposing a 10% increase on our warehouse rent. I'm told the real estate agent advised the landlord 16%.

The business was expecting a 3-5% increase at year one. 

I'm looking for guidance/suggestions. Any tips to move forward from here? It'll certainly not pay to move to another, cheaper, warehouse. The time and cost associated with moving would never pay for itself. 

Maybe 10% is normal, if that's the case then I'll suck it up and deal. 

Cheers to all!

TL;DR: Commercial property 1 yr. rent increase of 10%. Crazy, or to be expected?
[{"id": "exwhmw1", "text": "Is this an expiring 1-year lease and you are negotiating the new one or is it a multi-year lease and this is the annual bump? I'm assuming the former, but if multi-year lease, 10% annual bumps is crazy unless the LL put you in at a below market rate for your first year to help get the business moving. If it's a multi-year lease, what does the existing lease prescribe? If you're negotiating a new lease, sign on for more term, negotiate your rate, and your bumps. 3-5% is generally standard in my neck of the woods with the preponderance being 3%.", "replies": [], "depth": 1}, {"id": "exwlz9v", "text": "Our leases have 3% a year built in.   Maybe ask for a longer lease and split the 10% increase over 3 years?", "replies": [], "depth": 1}, {"id": "exymeoz", "text": "You should shop around for a better deal. If he is correct about bringing you up to below market rent, you won't be able to find a better deal, and the next best option will be about 16% more. \n\nIf you decide that the best deal is to stay you should be negotiating a longer lease with built-in annual increases of 3-5% so that you're not re-negotiating every year.", "replies": [], "depth": 1}, {"id": "exywrmb", "text": "Is your business growing or shrinking? Is it retail related, was it a pain in the ass getting the necessary permits to move into your space? \n\nBasically, can you move or not? \n\nIf so, look around to see what other options you have. \n\nThe landlord signed you to a one year lease because he thought you were going to go out of business, you had no credit ect. Is he proposing another one year lease? If so fuck that guy. You want 5 years at 2-3% annual increases. \n\nIs your town total dogshit and there are s bunch of for lease signs everywhere? If so think about moving and getting free rent on a new space. \n\nPost the specifics of your new lease so we know if you are getting hosed or not.", "replies": [{"id": "ey6wvfw", "text": "We're growing. We really can't move though, the situation here is too good. It'll likely end up being worth the increase.\n\nWe're commercial, the property is zoned correctly. Permits for the space were simple. \n\nThe town isn't fully dog shit, but it's no booming, progressive area either.\n\nI've been told by the \"go-between\" (property manager) that the LL is skeptical of a 3 year lease, even though it's what we've proposed.  \n\n Thank you for your reply.", "replies": [{"id": "ey79b9w", "text": "Well that sucks. Means every year you have to do this dog and pony show and budget accordingly. \n\nI would go through the lease and make sure you know who pays for the net expenses or if it is a gross lease. \n\nGood luck, maybe you can try to negotiate a rental decrease if things go sideways", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ey5udbc", "text": "3% annual is a pretty standard increase for commercial real estate, however, it sounds like demand in the area could be driving up prices for you now. As others have suggested, you could try increasing to a longer term, and requesting a break in rental increase in return. Best case scenario would be including a termination clause in the event business isn't going as planned and you need out of the Lease. I have access to a database of properties and can confirm for you if what they are requesting is in line with the market, if you want to PM me.", "replies": [], "depth": 1}]