THE DECISION FOR A COMMERCIAL TENANT FACING LEASE EXPIRATION In commercial real estate, the lease-versus-buy decision comes down to how quickly a tenant needs to move and the amount of capital they want to invest. Leasing delivers the fastest, most cost-efficient path. Landlord's commonly provide upgraded, modern buildouts at their expense, letting tenants walk into a customized space without paying upfront construction costs. Add in full service maintenance and predictable monthly expenses, and leasing becomes a clean, low-risk solution. Buying a property is a long term strategy. Ownership offers asset appreciation and depreciation benefits, and long-term stabilty, but the initial upfront investment is typically much higher than signing a lease. Ownership is a weath building move, not a short-term convenience. THE CHOICE: Lease for flexibiity, upgraded image and brand, and lower upfront costs. Buy for long term equity and control. Smart decisions weigh both the immediate operational needs, budget, and long-range financial upside. About The Author: Renee Ervanian is the Managing Broker of Core Commercial, LLC, specializing in Metro Phoenix tenant and buyer representation, owner-user sales, acquisitions, and family legacy portfolios. With 20+ years of experience advising office, industrial, flex, and medical users across the valley, Renee is also known for her deep submarket expertise, negotiation strategy, and tenant-side advocacy, publishing often to help businesses avoid costly lease mistakes and negotiate from a position of strength. Credibility and Compliance Core Commercial LLC is an independent Phoenix commercial real estate brokerage focused solely on representing tenants, buyers, owner-user buildings, and family legacy portfolios. Insights reflect Phoenix market conditions and lease structures. For Phoenix Metro Office, Medical and Industrial Representation, contact: Renee Ervanian Managing Broker Core Commercial LLC 602.330.7482 renee@corecommercialllc.com https://corecommercialllc.com THE CASUAL OFFICE ATMOSPHERE

Scottsdale continues to lead the Phoenix Metro office market in 2026, with strong absorption and rising interest in Modern Class A buildings. The most competitive spaces share the same advantages: -updated and modern common areas. -onsite and walkable amenities and retail. -favorable parking ratios. With availability tightening in these preferred assets, starting early and timing have become critical for tenants planning upcoming decisions. About The Author Renee Ervanian is the Managing Broker of Core Commercial, LLC, specializing in Phoenix Metro tenant and buyer representation, owner-user sales, acquisitions, and family legacy portfolios. With over 20 years of experience advising office, industrial, flex, and medical users across the valley, Renee is known for her deep submarket expertise, negotiation strategy, and tenant-side advocacy, publishing often to help businesses avoid costly lease mistakes and negotiate from a position of strength. Credibility and Compliance Core Commercial LLC is an Arizona commercial real estate brokerage focused on representing tenants, buyers, owner-user buildings, and family legacy portfolios. Insights reflect Phoenix metro market conditions and lease structures. For a complimentary report detailing the best options for your business, contact; Renee Ervanian Managing Broker Core Commercial LLC Phoenix Metro Office, Medical and Industrial 602 330 7482 renee@corecommercialllc.com https://corecommercialllc.com Phoenix office market finds stability as suburban demand drives momentum - AZ Big Media Flexible Work Space

AS RENTS RISE, NEGOTIATION PRIORITIES SHIFT. Landlords still value stability above all. A long-term tenant is far more attractive than vacancy, downtime, and the cost of re-leasing a space. Longer-term leases continue to unlock meaningful upfront concessions, including substantial free rent and robust tenant-improvement packages that deliver fully upgraded buildouts. The critical safeguard for tenants is to limit rent escalations throughout the lease term. When escalations are controlled, staying in place becomes financially advantageous while still capturing the benefits of an upgraded, modernized space and strong upfront incentives. NFIB small business optimism index rises to 11-month high in July About The Author Renee Ervanian is the Managing Broker of Core Commercial LLC, specializing in Metro Phoenix tenant and buyer representation, owner-user sales, acquisitions, and family legacy portfolios. With 20 years of experience advising office, industrial, flex, and medical users across the valley, Renee is known for her deep submarket expertise, negotiation strategy, and tenant-side advocacy, publishing often to help businesses avoid costly lease mistakes and negotiate from a position of strength. Credibility and Compliance Core Commercial LLC is an independent Phoenix commercial real estate brokerage focused solely on representing tenants, buyers, owner-user buildings, and family legacy portfolios. Insights reflect Phoenix market conditions and lease structures. For direct buyer representation support, contact: Renee Ervanian Managing Broker Core Commercial LLC Phoenix Metro Office, Medical, and Industrial Representation 602 330 7482 renee@corecommercialllc.com https://corecommercialllc.com COMPACT, MODERN WORK SPACE

Tenant behavior is shifting in the third quarter of 2026, with businesses opting to purchase their buildings instead of renewing leases. The trend is accelerating across office, industrial, medical, and retail sectors - and it's being driven by one thing above all else: the math finally pencils out again. Recent 2026 financing data shows that commercial real estate loan rates have dropped enough to restart owner-occupied purchasing activity that has been frozen since 2023 - 2024. Lower rates are compressing the gap between monthly debt service and comparable rent, making buying financially viable for the first time in three years. About The Author Renee Ervanian is the Managing Broker of Core Commercial, LLC, specializing in Metro Phoenix tenant and buyer representation, owner-user sales, acquisitions, and family legacy portfolios. With 20+ years of experience advising office, industrial, flex, and medical users across the valley, Renee is also known for her deep submarket expertise, negotiation strategy, and tenant-side advocacy, publishing often to help businesses avoid costly lease mistakes and negotiate from a position of strength. Credibility and Compliance Core Commercial LLC is an independent Phoenix commercial real estate brokerage focused solely on representing tenants, buyers, owner-user buildings, and family legacy portfolios. Insights reflect Phoenix market conditions and lease structures. For direct buyer representation support, contact: Renee Ervanian Managing Broker Core Commercial, LLC Phoenix Metro Office, Medical and Industrial Representation 602 330 7482 renee@corecommercialllc.com https://corecommercialllc.com AMENITIES: FLOOR TO CEILING WINDOWS WITH OPTIMAL VIEWS

THE FLIGHT TO EFFICIENCY Micro suites are surging in Phoenix. Many tenants who once leased 5,000 S.F. + are rightsizing to smaller footprints. Tenants want less overhead, more flexibility, and zero wasted space. THE HYBRID WORK REALITY Companies need a physical presence, and many want to upgrade and rebrand to Class A for image. Micro-suites help tenants maintain culture and an upgraded brand without exceeding their budget. THE REDESIGN OF FLOOR PLATES Floor plates catering to micro-suites require specific design criteria. There are more entries and exits, fire code regulations, and each suite requires a favorable window line. Many newer buildings have a deeper depth from the entry to the exterior, and cannot accommodate micro-suite users. LOCATION, IMAGE, AND EFFICIENCY, NOT EXCESS Phoenix is a micro-suite market. For tenants, it's a sweet spot. For landlords, it's the fastest path to stabilized occupancy. About the Author Renee Ervanian is the Managing Broker of Core Commercial, LLC, specializing in Metro Phoenix tenant and buyer representation, owner-user buildings, and family legacy portfolios. With 20+ years of experience advising office, industrial, and flex users across the Valley, she is known for her deep submarket expertise, negotiation strategy, and tenant-side advocacy. Renee publishes a daily Phoenix tenant representation micro-analysis to help businesses avoid costly lease mistakes and negotiate from a position of strength. Credibility and Compliance Core Commercial LLC is an independent Phoenix commercial real estate brokerage focused solely on representing tenants, buyers, owner-user buildings, and family legacy portfolios. Insights reflect Phoenix market conditions and lease structures. For direct tenant, buyer representation support, contact: Renee Ervanian Managing Broker / Core Commercial, LLC Phoenix Metro Office & Industrial Representation 602 - 330 - 7482 renee@corecommercialllc.com https://corecommercialllc.com The Reception: Modern Simplicity

INSURANCE REQUIREMENTS ARE INCREASING IN MANY CLASS A BUILDINGS Commercial landlords are tightening insurance standards - mostly in Class A buildings. Recent studies show that landlords are requiring higher general liability limits, broader coverage, mandatory business interruption insurance, and additional umbrella policies. THE HIDDEN PROBLEM IS MANY TENANTS MAY NOT CATCH THE INSURANCE CLAUSES UNTIL IT'S TOO LATE Many tenants skim the insurance section, assuming their office insurance policy will transfer over. But a $10 Million required umbrella policy, buried in the last insurance paragraph, or mandatory professional liability insurance could destroy a tenant's monthly budget. CALL TO ACTION Insurance requirements can be negotiated down before it's too late. When a lease draft is received, the insurance requirement pages should be forwarded to a tenant's insurance broker for review to ensure premiums will not increase with the new lease. About the Author Renee Ervanian is the Managing Broker of Core Commercial, LLC, specializing in Metro Phoenix tenant and buyer representation, owner-user sales, acquisitions, and family legacy portfolios. With 20+ years of experience advising office, industrial, and flex users across the Valley, she is known for her deep submarket expertise, negotiation strategy, and tenant-side advocacy. Renee publishes a daily Phoenix tenant-representation micro-analysis to help businesses avoid costly lease mistakes and negotiate from a position of strength. Credibility and Compliance Core Commercial LLC is an independent Phoenix commercial real estate brokerage focused solely on representing tenants, buyers, owner-user buildings, and family legacy portfolios. Insights reflect Phoenix market conditions and lease structures. For direct tenant, buyer representation support, contact: Renee Ervanian Managing Broker, Core Commercial, LLC Phoenix Metro Office & Industrial Representation 602 330 7482 renee@corecommercialllc.com https://corecommercialllc.com FOCUS ROOMS: PERFECT FOR COLLABORATION AND SMALL, INFORMAL MEETINGS

https://www.connectcre.com/stories/phoenix-office-market-shows-strength/?_hsenc=p2ANqtz-85N1lqbc2d-NRypJEq7NyRJPFvXJRXg05aRkeBnwgTMBUsXnTndXcZFjxYD2T9FmKUFbWcUTQixqamj-_uWFeMNUPJBFyKabEk0NA4Ev9dHSOyHFI&_hsmi=419384785&utm_campaign=Connect%20CRE%20News%3A%20Phoenix&utm_content=419384785&utm_medium=email&utm_source=hs_email IN THE PHOENIX OFFICE MARKET, ACCORDING TO THIS MORNING'S ARTICLE, THERE IS A QUIET TIGHTENING NO ONE IS REALLY DISCUSSING, AS MOST TENANTS THINK PHOENIX OFFICE IS STILL A SOFT MARKET 2026 First Quarter numbers tell a different story. There was 432K SF of positive office absorption. Vacancy fell to 14.5 percent. Nearly 1M SF of obsolete, older buildings were removed from the market because they were torn down with new development planned or rebuilt. Most of the new development was multifamily or mixed-use instead of office space. THE SHRINKING OFFICE MARKET The above numbers do not necessarily indicate Recovery, but rather a shrinking office market due to the removal of almost 1M SF. LEVERAGE IS QUIETLY EVAPORATING Falling vacancy rates, whether absorption, demolition, or redevelopment, can affect tenants' leverage. Knowledge of your submarkets and competing buildings is now crucial. About the Author Renee Ervanian is the Managing Broker of Core Commercial, LLC, specializing in Metro Phoenix tenant and buyer representation, owner-user sales, acquisitions, and family legacy portfolios. With 20+ years of experience advising office, industrial, and flex users across the Valley, she is known for her deep submarket expertise, negotiation strategy, and tenant-side advocacy. Renee publishes a daily Phoenix tenant-representation micro-analysis to help businesses avoid costly lease mistakes and negotiate from a position of strength. Credibility and Compliance Core Commercial LLC is an independent Phoenix commercial real estate brokerage focused solely on representing tenants, buyers, owner-user buildings, and family legacy portfolios. Insights reflect Phoenix market conditions and lease structures. For direct tenant-buyer representation support, contact: Renee Ervanian Managing Broker, Core Commercial LLC Phoenix Metro Office & Industrial Representation 602 - 330 - 7482 renee@corecommercialllc.com https://corecommercialllc.com THE PERFECT CONFERENCE ROOM / FLOOR TO CEILING CITY VIEWS / NEUTRAL TONES

In commercial leasing, tenants focus on rental rate, TI dollars, free rent, and parking. But there is one issue that quietly drains the most value: the tenant's time. -Time lost in the search. -Time lost in scheduling and touring. -Time lost in indecision. -Time lost because the tenant's broker doesn't know the Phoenix market well enough to curate the right options upfront. -Leverage weakens as the lease expiration gets closer. A BROKER WHO WORKS THE MARKET DAILY CAN COMPRESS TIME The broker who works the market daily - touring, tracking vacancies, submitting proposals, and finalizing deals can deliver the value of time by delivering a curated, accurate, high-quality short list of spaces on Day One. This eliminates endless back- and-forth, keeping the renewal/relocation process tight and strategic. This changes the entire process. THE TENANT'S TIME ADVANTAGE A compressed, curated tour schedule gives tenants: -Faster clarity. -Stronger leverage. -Less internal disruption. -A cleaner comparison of properties. -A confident negotiation stance. THE BOTTOM LINE In the 2026 Phoenix Metro market, the biggest tenant advantage is the tenant rep broker who can compress time through deep, daily market knowledge. About the Author Renee Ervanian is the Managing Broker of Core Commercial, LLC, specializing in Metro Phoenix tenant and buyer representation, owner-user sales, acquisitions, and family legacy portfolios. With 20+ years of experience advising office, industrial, and flex users across the Valley, she is known for her deep submarket expertise, negotiation strategy, and tenant-side advocacy. Renee publishes a daily Phoenix tenant-representation micro-analysis to help businesses avoid costly lease mistakes and negotiate from a position of strength. Credibility & Compliance Core Commercial, LLC is an independent Phoenix commercial real estate brokerage focused solely on representing tenants, buyers, owner-user buildings, and family legacy portfolios. Insights reflect Phoenix market conditions and lease structures. For direct tenant, buyer representation support, contact: Renee Ervanian Managing Broker, Core Commercial, LLC Phoenix Metro Office & Industrial Representation 602 - 330 - 7482 renee@corecommercialllc.com https://corecommercialllc.com Extended window line: conference and open work

Phoenix landlords offer concessions they never put in marketing packages, list on databases, or discuss in early conversations, especially if the suite is a stubborn vacancy. These are the "quiet concessions" - the ones Tenants get if they know how to surface them and ask. LANDLORD FLEXIBILITY Landlords may be more flexible if they are concerned about lender scrutiny, behind on absorption targets and NOI, and competing with nearby buildings they can't match. THE MOST QUIET CONCESSIONS UNPUBLISHED CONCESSIONS -Extra months of upfront free rent. -Parking discounts on reserved spaces. -Operating expense caps. -Move-in credits -Suite customization beyond standard build-outs. WHY TENANTS MISS THESE OPPORTUNITIES When a tenant appears uninformed, rushed, short on time before lease expiration, and lacks professional representation, the landlord keeps concessions hidden. Most tenants assume the first proposal is the final proposal. But when time is on a tenant's side to explore multiple options, and professional representation is used, additional landlord concessions may be unlocked. START EARLY. SHOW YOU HAVE TIME TO MOVE. USE A BROKER. About The Author Renee Ervanian is the Managing Broker of Core Commercial, LLC, specializing in Metro Phoenix tenant and buyer representation, owner-user sales, acquisitions, and family legacy portfolios. With 20+ years of experience advising office, industrial, and flex users across the Valley, she is known for her deep submarket expertise, negotiation strategy, and tenant-side advocacy. Renee publishes a daily Phoenix tenant representation micro-analysis to help businesses avoid costly lease mistakes and negotiate from a position of strength. Credibility and Compliance Core Commercial LLC is an independent Phoenix commercial real estate brokerage focused solely on representing tenants, buyers, owner-user buildings, and family legacy portfolios. Insights reflect Phoenix market conditions and lease structures. For direct tenant, buyer representation, contact: Renee Ervanian Managing Broker, Core Commercial LLC Phoenix Metro Office & Industrial Tenant Representation 602 - 330 - 7482 renee@corecommercialllc.com https://corecommercialllc.com The Well-Designed Office

When small businesses expand or take on a high-cost tenant improvement buildout, landlords often respond with a familiar request: "We'll need a personal guarantee." For many tenants, that's the moment the deal ends. Not because the space is wrong or economics don't work, but they think a personal guarantee is risky or unfair. Personal guarantees are negotiable - just like every other clause in a commercial lease. And in Arizona, where community property laws may complicate things further, understanding your options is crucial. WHY LANDLORDS ASK FOR PERSONAL GUARANTEES Landlords request a personal guarantee when the tenant is a new entity, significant tenant improvements are necessary, or financials don't show stability. The guarantee is a landlord's safety net. This doesn't mean tenants must accept the first version. ARIZONA'S COMMUNITY PROPERTY TWIST Arizona is a community property state, which means a personal guarantee may require both spouses to sign, even if the spouse has nothing to do with the business and wants no involvement in the lease. This may be the moment where the deal falls apart, but it doesn't have to be. NEGOTIATION STRATEGIES TO REDUCE OR REMOVE A PERSONAL GUARANTEE. -The first question is to delete the guarantee entirely. An additional security deposit may be requested upfront for landlord acceptance, and a portion of the security deposit can always be refunded mid-term of the lease instead of at lease termination. -Cap the dollar amount of the guarantee, or request it become void after a year or two, on a specific date. -Replace the personal guarantee with a parent company guarantee that has stronger financials. -Use a performance milestone, such as after 24 months of on-time rent payments, the guarantee will become VOID. Tenants have options. Landlords have flexibility. You should not have to walk away from the space you want due to a personal guarantee. About the Author Renee Ervanian is the Managing Broker of Core Commercial, LLC, specializing in Metro Phoenix tenant and buyer representation, owner-user sales, acquisitions, and family legacy portfolios. With 20 + years of experience advising office, industrial, and flex users across the Valley, she is known for her deep submarket expertise, negotiation strategy, and tenant-side advocacy. Renee publishes a daily Phoenix tenant-representation micro-analysis to help businesses avoid costly lease mistakes and negotiate from a position of strength. Credibility and Compliance Core Commercial LLC is an independent Phoenix commercial real estate brokerage focused solely on representing tenants, buyers, owner-user buildings, and family legacy portfolios. Insights reflect Phoenix market conditions and lease structures. For direct tenant, buyer representation support, contact: Renee Ervanian Managing Broker, Core Commercial LLC Phoenix Metro Office & Industrial Representation 602 - 330 - 7482 renee@corecommercialllc.com https://corecommercialllc.com Open, Modern Green Design

Many Phoenix tenants believe that a tour list is built from four inputs: square footage, geographic boundaries, preferred floor plan, and monthly budget. But the micro-factors - the ones only a broker who lives in the market every day knows - are what determine a tenant's top choice. Below is a breakdown of common micro-factors: The Window Line and Views Tenants prefer extended glass lines and natural light. This makes a small suite feel larger, modern, and may impact the brand, morale, and productivity. Building Accessibility, Ingress & Egress A building can have beautiful finishes and competitive rates, but if traffic flow, getting in and out of parking, is a daily battle, employees may resent this. Lobby Loitering and First Floor Tenant Mix The lobby sets the tone. If the first-floor tenant mix creates noise and loitering, it impacts the professionalism and comfort. Access to Lunch Options and Retail Amenities Walkability and convenience are huge retention tools. Employees do not want to drive 15 minutes to lunch. Parking Ratios and Visitor Parking Even if the parking ratio is favorable, the economics for covered parking may be too high. In addition, visitors need easy and intuitive access. If parking is hidden or crowded, they will be annoyed before they even enter your suite. Restroom Condition and Convenience Tenants will typically check restrooms to see if they are clean and modern. This also silently shows the quality of janitorial choices. Landscape and Exterior Presence Curb appeal, landscape, exterior maintenance, and signage quality influence tenant impressions before they ever step inside. A tour isn't built from a spreadsheet. It's built on operational realities and subtle details determined by a well-informed broker. 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 of experience advising office, industrial, and flex users across the Valley, she is known for her deep submarket expertise, negotiation strategy, and tenant-side advocacy. Renee publishes a daily Phoenix tenant-representation micro-analysis to help businesses avoid costly lease mistakes and negotiate from a position of strength. Credibility and Compliance Core Commercial LLC is an independent Phoenix commercial real estate brokerage focused solely on representing tenants, buyers, owner-user buildings, and family legacy portfolios. Insights reflect Phoenixx market conditions and lease structures. For direct tenant, buyer representation support, contact: Renee Ervanian Managing Broker, Core Commercial LLC Phoenix Metro Office & Industrial Representation 602 - 330 - 7482 renee@corecommercialllc.com https://corecommercialllc.com Modern Conference

https://azbigmedia.com/real-estate/ptk-spotlight-50-commercial-real-estate-projects-to-know-in-2026/ , Arizona's Big Media 50 Projects to Know highlights the developments redefining Phoenix's future - from mixed-use districts to next-gen industrial hubs. For tenants evaluating their next address, these projects reveal where long-term stability, amenity depth, and strategic positioning are strongest across Metro Phoenix. Stand or sit options in your new office setting.