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. THE CORNER OFFICE 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 https://corecommercialllc.com 2801 East Camelback Road, Suite 200 Phoenix, AZ 85016 602 330 7482 renee@corecommercialllc.com Phoenix Commercial Real Estate Sales News - Phoenix Business Journal

Phoenix ofice vacancy has fallen for three straight quarters, but not because more companies are hiring - it's because roughly 8 million square feet of Phoenix office space has been designated for conversion to other uses since 2020. Older buildings have been pulled out of office inventory for redevelopment into housing or industrial space. WHAT HAPPENS TO A TENANT'S NEGOTIATING LEVERAGE AS AVAILABLE SPACE DECLINES? As available space declines, negotiating leverage erodes. With fewer options on the market, landlords face less competition for their space, which means rental rates can climb and cost-saving concessions become more limited. WHAT SHOULD A TENANT SHOULD DO THIS MONTH IF THEIR LEASE EXPIRES IN 2026 OR 2027? Engaging a tenant rep broker to prepare a preliminary market report identifying your best options. Building this knowledge base early lets a tenant negotiate from a position of strength rather than reacting under pressure and losing valuable concessions. WHAT IS THE AUTHOR'S BACKGROUND? 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, indusrial, and medical users across the valley, Renee is also known for her deep submarket expertise, negotiation strategy, and tenant/buyer-side advocacy, publishing often to help businesses avoid costly lease mistakes and negotiate from a position of strength. https://www.cbre.com/insights/figures/q2-2026-us-office-market-report THE FOCUS ROOM Renee Ervanian Managing Broker https://corecommercialllc.com renee@corecommercialllc.com 2801 East Camelback Road, Suite 200 Phoenix, AZ 85016 602 330 7482

Phoenix office, industrial, and medical tenants do not lose money on the base rental rate, clearly printed in the lease. The losses show up in lease clauses that were not negotiated. After negotiating hundreds of leases across the Valley, three patterns emerge again and again, each one draining dollars from tenants who thought they had a fair lease. The patterns cost tenants unexpected dollars and surprise obligations. OPERATING EXPENSE PASS-THROUGHS (OPEX). Many tenants assume CAMS are fixed. They are not. The tenant needs to negotiate caps, audit rights, and exclusions. Capital expenditure language should be reviewed. RENEWAL OPTIONS. If a tenant does not include a lease renewal option in their lease, they risk a neighboring tenant expanding, the building being sold to an owner/user who will occupy their space, or other unexpected situations. Even if lease renewal is unlikely, the renewal clause should be included. RESTORATION OBLIGATIONS / RETURN OF THE SECURITY DEPOSIT. The tenant is expected to leave the empty suite in clean condition, with normal wear and tear. The Security Deposit should be returned within a short time frame after lease expiration. Unnecessary charges that chip away at the deposit refund are typically unnecessary. COMPLIMENTARY BEST OPTIONS REPORTS: Renee Ervanian / Managing Broker https://www.corecommercialllc.com renee@corecommercialllc.com 602 330 7482 OPEN OFFICE CONCEPT

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 tenant rep broker who works 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 employee 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 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. The hidden risks behind commercial real estate growth and how owners can prepare - AZ Big Media 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 Defining The Office Image

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 tenant rep broker who works 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 employee 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 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. The hidden risks behind commercial real estate growth and how owners can prepare - AZ Big Media 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 Defining The Office Image

Phoenix landlords offer concessions they never put in marketing packages, list on databases, or discuss in early conversations. 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 meeting lender occupancy requirements, 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. -Lowering the base rental. -Parking discounts on covered, reserved spaces. -Operating expense caps. -Move-in credits. -Suite customization beyond standard build-outs. -Additional signage. WHY TENANTS MISS COST SAVING CONCESSIONS When a tenant appears uninformed, rushed, short on time before lease expiration, and lacks professional broker representation, the landlord keeps concessions hidden. Most tenants assume the first landlord 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. Phoenix office market outperforms West as vacancy falls - AZ Big Media 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, Medical & Industrial Tenant Representation 602 - 330 - 7482 renee@corecommercialllc.com https://corecommercialllc.com The Well-Designed Office Phoenix office market outperforms West as vacancy falls - AZ Big Media

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, 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 required, or financials don't project 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 a 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 the current Phoenix market conditions and lease structures. For direct tenant, buyer representation support, contact: Renee Ervanian Managing Broker, Core Commercial LLC Phoenix Metro Office, Medica & Industrial Representation 602 - 330 - 7482 renee@corecommercialllc.com https://corecommercialllc.com Open, Modern Green Design Adaptive Reuse Program | City of Phoenix TSMC Announces Additional $100 Billion Investment In Arizona | City of Phoenix

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, 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 required, or financials don't project 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 a 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 the current Phoenix market conditions and lease structures. For direct tenant, buyer representation support, contact: Renee Ervanian Managing Broker, Core Commercial LLC Phoenix Metro Office, Medica & Industrial Representation 602 - 330 - 7482 renee@corecommercialllc.com https://corecommercialllc.com Open, Modern Green Design Adaptive Reuse Program | City of Phoenix TSMC Announces Additional $100 Billion Investment In Arizona | City of Phoenix

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