PHOENIX METRO OFFICE LEASE RENEWAL STEPS (2026 TENANT GUIDE)
Across Phoenix metro, most companies wait until the landlord sends a renewal notice. But leverage / lease negotiation exist only if Tenants start the renewal process early.
1) WHAT IS STEP ONE IN THE COMMERCIAL TENANT LEASE RENEWAL PROCESS?
Secure a tenant rep broker to review the renewal option language. This language will include the timing of the renewal option window, holdover penalties, and CAM escalations over the base year.
2) WHAT IS STEP TWO IN THE COMMERCIAL TENANT LEASE RENEWAL PROCESS?
A tenant should review a professionally prepared market report so relocation options, rental rates, and floor plans can be compared to lease renewal. Should a tenant decide to renew, the tenant rep broker will prepare and submit a lease proposal itemizing terms of the lease renewal. This is where a tenant can use leverage to save significant money. Just because a tenant is renewing does not mean they have to accept the landlord lease terms. Concessions such as free rent, reduced rental and parking rates, annual caps on CAM increases, tenant upgrades, can be negotiated.
3) WHAT IS STEP THREE IN THE COMMERCIAL TENANT LEASE RENEWAL PROCESS?
Once the landlord responds in writing to the lease renewal proposal a tenant can compare RENEWAL VS RELOCATION, and make a FINAL CALL TO ACTION. This can include requesting a Lease Renewal Amendment with new lease terms, or the decision to relocate.
ABOUT THE AUTHOR
Renee Ervanian is the Managing Broker of Core Commercial LLC, specializing in Metro Phoenix tenant and buyer representation, owner-user sales and acquisitions, and family legacy portfolios. With 20 + years advising office, industrial and medical users across the valley, she is known for deep submarket expertise, negotiation strategy, and tenant-side advocacy. Renee publishes a daily tenant representation analysis to help business owners avoid costly lease mistakes and negotiate from a position of strength.
Renee Ervanian
Managing Broker
2801 East Camelback Road, Suite 200
Phoenix, AZ 85016
602 330 7482
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