AKA  How to Avoid Leaving Money on the Table at Renewal Time. Your lease renewal isn’t just a paperwork formality. Handled right, it’s a chance to protect your margins, improve your terms, and create space that actually supports your business. Handled wrong? It’s a fast track to overpaying, losing leverage and locking yourself into a space that doesn’t serve you anymore.

Here are the 10 most common (and completely avoidable) mistakes tenants make during commercial lease renewals and how to steer clear of every single one.

💣 Mistake #1: Starting Too Late

If you're 6 months out and just starting the conversation you’re already behind.
Give yourself 12–18 months to assess your options, renegotiate from strength, or pivot if needed. Panic mode = bad deals.

💣 Mistake #2: Taking the Landlord’s First Offer

That “standard increase”? It might be padded. Without market data, you’re negotiating blind. A commercial realtor brings the comps, context, and confidence to push back and win.

💣 Mistake #3: Ignoring Your Existing Lease

That old lease you signed five years ago? It still matters. Hidden renewal clauses, CAM overages, outdated clauses; these can all quietly cost you if you don’t audit the fine print.

💣 Mistake #4: Renewing Out of Habit

Just because the space is familiar doesn’t mean it still fits. Your team might’ve grown, pivoted, or gone hybrid. Don’t pay for square footage you don’t use or squeeze into something that stifles growth.

💣 Mistake #5: Missing Key Dates

Some leases require written notice 6 to 12 months in advance to trigger renewal rights. Miss the window and you could lose your space or get stuck with a rent bump you didn’t agree to.

💣 Mistake #6: Failing to Shop Around

Even if you want to stay, touring a few comps gives you leverage. It shows the landlord you’re informed and reminds them you have options.

💣 Mistake #7: Underestimating the Landlord’s Playbook

Landlords don’t just “guess” the renewal rate. They run the numbers. They plan for resistance. If you don’t challenge their assumptions, you’re rewarding them for betting on your silence.

💣 Mistake #8: Not Thinking Long-Term

Renewals should support where your business is going, not just where it’s been. Will this space still serve you in 2 - 5 years? If not, negotiate now or regret later.

💣 Mistake #9: Leaving Perks on the Table

Yes, you can negotiate incentives even as a renewing tenant. Smart businesses ask for:
– Free rent
– TI allowances
– Parking deals
– CAM caps
You don’t get what you don’t ask for. And knowing how to ask? That’s where we help.

💣 Mistake #10: Doing It Alone

Lease renewals are full of high-stakes details. A commercial realtor gives you expert-level intel, market-tested strategies, and the kind of landlord-facing credibility that gets deals done right.

Renewing without a plan is like signing a blank cheque, let’s fix that before your landlord fills in the numbers.

Renewals are a business strategy.  Skip the mistakes. Maximize your leverage. And negotiate like your future depends on it. Before your next lease auto-renews on someone else’s terms, let's talk.

📍 Built for business. Backed by data. Negotiated with bite.

📩 [email protected]
🌐 williamsoncommercialrealty.com

Client Focused | Solution Driven | Commercial Realtors

What’s a Termination Clause and Why You Should Care

A termination clause in a commercial lease is a provision that allows either the tenant, the landlord, or both to end the lease agreement before its full term under clearly defined conditions. In office and industrial leases, this clause acts as a safety valve, giving both parties flexibility to respond to changes in business needs, market conditions, or property strategy.

🏢 For Tenants: Built-In Flexibility

Termination clauses are a lifeline for tenants navigating uncertainty, growth, or change. Whether you're scaling up and outgrowing your current space, downsizing due to headcount changes, or shifting your logistics strategy, the ability to exit your lease early, without legal chaos can protect your bottom line. It’s particularly valuable for growing businesses, hybrid work environments, or distribution operations adapting to supply chain shifts.

🏗️ For Landlords: Strategic Control

Landlords use termination clauses to keep their options open. Maybe the building’s being redeveloped. Maybe a higher-paying tenant is waiting in the wings. Or maybe a tenant just isn’t performing, missed payments, constant headaches, breached terms.

Having a termination clause in place allows landlords to:

• Reposition the asset

• Clear the path for new development

• Manage tenancy risk

• Adapt to market shifts

It’s not about kicking tenants out for fun, it’s about protecting the property’s long-term value.

For landlords, termination clauses can support long-term asset value. They provide the ability to reposition the property, redevelop, or bring in a more strategic tenant when the timing is right. When structured properly, with reasonable notice periods and financial protections like termination fees or TI cost recovery, these clauses reduce exposure and keep the landlord in control of their investment.

💡 Termination Clauses Work Best When They’re Balanced

Not every lease needs one but where they fit, they offer structure, clarity, and flexibility for both sides.

A solid clause should: 

✅ Clearly define the circumstances that allow for early termination
✅ Include appropriate notice periods
✅ Address compensation or penalties for the exiting party
✅ Support your business or investment strategy, not sabotage it

Ultimately, a well-crafted termination clause creates balance. It doesn’t just offer an escape route, it builds in flexibility that protects both sides when things don’t go as planned. And in today’s evolving office and industrial landscape, flexibility isn’t just nice to have it can be essential. Termination clauses aren’t a red flag, they’re a reality check. If your lease doesn’t have one? You may be tying your business to a space that stops serving you before the lease ever does.

Need help breaking up with your lease? We’ll make it cleaner than a celebrity divorce; no public drama, no messy headlines.

📩 [email protected]
🌐 williamsoncommercialrealty.com

I don’t do cookie-cutter. I do what works, for you.

Client Focused | Solution Driven | Commercial Realtors

Because Sometimes You Need a Way Out - Without Burning It All Down

Let’s be honest, businesses evolve. Markets shift. Supply chains change. Your square footage needs might look a lot different five years into a lease than they did on Day One. This is where a termination clause comes in. It’s one of the most under-discussed parts of a commercial lease, and one of the most important for office and industrial tenants trying to plan long-term without locking themselves into a space that could eventually work against them.

Let’s break it down.

🔍 What Is a Termination Clause?

In commercial leasing, a termination clause defines the conditions under which a lease can be ended before its agreed-upon expiry date. It can be triggered by:

• One party 

• Mutual agreement

• Specific scenarios (relocation, loss of a major contract, etc.)

In the industrial and office world, this clause can mean the difference between flexibility and financial deadweight.

🏭 How Termination Clauses Protect Office & Industrial Tenants

🧭 Flexibility to Pivot

The last few years have shown us just how fast tenant needs can change:

• A logistics company outgrows its warehouse

• An office tenant shifts to hybrid work and no longer needs 10,000 SF

• A key supplier or client relationship changes your operating footprint

Having a termination clause in your lease gives you a safety valve to adjust when the market, or your business, moves in a new direction.

💸 It’s Not a Free Exit

Most termination clauses for office or industrial tenants come with some form of financial obligation:

• A termination fee

• A reimbursement of unamortized tenant improvement (TI) costs

• Repayment of unamortized inducements

• Notice period (90–180 days is common)

You’ll want to do the math: Is the cost of leaving early worth the benefit of getting into a space that actually fits your business?

🧨 Beware the Landlord’s Termination Right

Sometimes it’s the landlord who has the power to terminate, especially in older industrial areas targeted for redevelopment, or in under-utilized office buildings slated for conversion. If your lease gives the landlord the right to pull the plug early for redevelopment or sale, you need to understand the timeline, the notice period, and your rights. You don’t want to be caught off guard.

💼 Why Landlords Include Termination Clauses

🏗️ Future-Proofing the Asset

Termination clauses give landlords optionality, especially in fast-changing areas such as:

• Redevelopment corridors

• Transitional employment zones

• High-demand logistics hubs

Maybe a higher-paying tenant comes along. Maybe zoning changes unlock new value. A well-structured termination right lets them adapt without being handcuffed by existing leases.

📉 Downside? Vacancies = Lost Income

Termination rights (especially for tenants) can result in:

• Gaps in occupancy

• Downtime between tenants

• Additional leasing and marketing costs

That’s why landlords typically balance this with:

• Long notice periods

• Financial penalties

• Strict conditions that must be met before the clause kicks in

But offering this flexibility can also attract tenants who otherwise wouldn’t sign a long-term deal. Strategic give-and-take.

📌 What to Include in a Smart Termination Clause

Whether you’re negotiating a new lease or renewing an existing one, keep these essentials in mind:

🔹 Clear Triggers

Spell out exactly when and how the clause can be used. Vague language = legal grey zones.

🔹 Notice Period

Standard is 90 to 180 days. Enough time to sublease, relocate, or shut down operations properly.

🔹 Termination Fee or Compensation

Make sure both parties are covered financially if the lease ends early.

🔹 Mutual Agreement Option

Include a clause that allows for early termination if both sides agree. Sometimes flexibility benefits everyone.

Final Word:

A termination clause isn’t just a legal formality, it’s a business tool. For office and industrial tenants, it means you’re not trapped in a space that no longer fits. For landlords, it’s a way to future-proof the asset and attract tenants in a market where flexibility is currency. The key is balance. You need protection and clarity so that when it’s time to exit, it’s clean, fair, and drama-free.

📩 Not sure what your lease actually says about termination?
Let’s take a look—before you end up stuck in a space that’s working against your business.

Susan Williamson
Commercial Realtor – Williamson Commercial Realty

✉️ [email protected]

I don’t do cookie-cutter. I do what works, for you.
Built for business. Backed by data. Negotiated with bite.

Client Focused | Solution Driven | Commercial Realtors

What Is Exclusive Use in Commercial Real Estate?

(And Why It Might Be the Most Underrated Clause in Your Lease)

If you’re leasing commercial space—especially retail—there’s one small clause in your lease that could have a huge impact on your business:

👉 Exclusive Use: It’s one of the most powerful tools a tenant can negotiate—and one of the most misunderstood.

🧾 So, What Is Exclusive Use?

In simple terms, Exclusive Use is a clause in a commercial lease that gives a tenant the sole right to offer specific products or services in a property. It prevents the landlord from leasing to another tenant who would compete directly with that business.

🔍 A Real-World Example:

Let’s say you run a bakery. You negotiate an exclusive use clause that restricts the landlord from leasing space to another bakery, café, or business selling baked goods.  That means no croissant competition next door. No donut wars down the hall. You get protected territory and peace of mind.

💡 Why It Matters for Tenants

Tenants often invest heavily in their space before they even open the doors—buildout, branding, equipment, staffing. That kind of upfront investment needs protection.

An exclusive use clause helps ensure:

• You’re not suddenly competing with the same product two units over

• Your brand identity isn’t diluted

• Your revenue potential isn’t undercut by direct competition

If you’ve invested in becoming the go-to fitness studio, burrito shop, or boutique skincare bar in the complex exclusive use helps keep it that way.

🧠 Why It Matters for Landlords

Done right, exclusive use isn’t a tenant power grab—it’s a smart landlord strategy.

It helps:

• Attract quality tenants with stronger commitments

• Create a smart, balanced tenant mix

• Encourage customer loyalty and cross-shopping

• Boost long-term property value

No one benefits from three bubble tea shops battling for foot traffic in one plaza. A well-thought-out tenant mix drives traffic and revenue across the board.

📌 Key Things to Keep in Mind

Scope:
Be specific. “Exclusive right to sell coffee” is different from “exclusive right to operate a café.” Ambiguity leads to conflict.

Existing Tenants:
Exclusivity typically doesn’t override existing leases. Make sure you know what’s already in place before signing.

Enforcement:
Tenants should ensure the clause includes remedies if it’s breached. Landlords need to track and manage all exclusives to avoid overlap.

🧾 When to Negotiate Exclusive Use

The best time?
📍 When signing a new lease
📍 When renewing a lease
📍 When expanding into a new unit

It’s much harder to ask for exclusivity after your competitor shows up next door.

Final Word:

Exclusive Use clauses protect tenants, support landlords, and create better-performing properties. They’re small clauses with big consequences—and they should never be overlooked.

Have questions about exclusivity in your lease?

Let’s make sure your business is the only buzz in the building (or at least the only one selling espresso).

📩 [email protected]
🌐 williamsoncommercialrealty.com

I don’t do cookie-cutter. I do what works, for you.

Client Focused | Solution Driven | Commercial Realtors

AKA  How to Avoid Leaving Money on the Table at Renewal Time. Your lease renewal isn’t just a paperwork formality. Handled right, it’s a chance to protect your margins, improve your terms, and create space that actually supports your business. Handled wrong? It’s a fast track to overpaying, losing leverage and locking yourself into a space that doesn’t serve you anymore.

Here are the 10 most common (and completely avoidable) mistakes tenants make during commercial lease renewals and how to steer clear of every single one.

💣 Mistake #1: Starting Too Late

If you're 6 months out and just starting the conversation you’re already behind.
Give yourself 12–18 months to assess your options, renegotiate from strength, or pivot if needed. Panic mode = bad deals.

💣 Mistake #2: Taking the Landlord’s First Offer

That “standard increase”? It might be padded. Without market data, you’re negotiating blind. A commercial realtor brings the comps, context, and confidence to push back and win.

💣 Mistake #3: Ignoring Your Existing Lease

That old lease you signed five years ago? It still matters. Hidden renewal clauses, CAM overages, outdated clauses; these can all quietly cost you if you don’t audit the fine print.

💣 Mistake #4: Renewing Out of Habit

Just because the space is familiar doesn’t mean it still fits. Your team might’ve grown, pivoted, or gone hybrid. Don’t pay for square footage you don’t use or squeeze into something that stifles growth.

💣 Mistake #5: Missing Key Dates

Some leases require written notice 6 to 12 months in advance to trigger renewal rights. Miss the window and you could lose your space or get stuck with a rent bump you didn’t agree to.

💣 Mistake #6: Failing to Shop Around

Even if you want to stay, touring a few comps gives you leverage. It shows the landlord you’re informed and reminds them you have options.

💣 Mistake #7: Underestimating the Landlord’s Playbook

Landlords don’t just “guess” the renewal rate. They run the numbers. They plan for resistance. If you don’t challenge their assumptions, you’re rewarding them for betting on your silence.

💣 Mistake #8: Not Thinking Long-Term

Renewals should support where your business is going, not just where it’s been. Will this space still serve you in 2 - 5 years? If not, negotiate now or regret later.

💣 Mistake #9: Leaving Perks on the Table

Yes, you can negotiate incentives even as a renewing tenant. Smart businesses ask for:
– Free rent
– TI allowances
– Parking deals
– CAM caps
You don’t get what you don’t ask for. And knowing how to ask? That’s where we help.

💣 Mistake #10: Doing It Alone

Lease renewals are full of high-stakes details. A commercial realtor gives you expert-level intel, market-tested strategies, and the kind of landlord-facing credibility that gets deals done right.

Renewing without a plan is like signing a blank cheque, let’s fix that before your landlord fills in the numbers.

Renewals are a business strategy.  Skip the mistakes. Maximize your leverage. And negotiate like your future depends on it. Before your next lease auto-renews on someone else’s terms, let's talk.

📍 Built for business. Backed by data. Negotiated with bite.

📩 [email protected]
🌐 williamsoncommercialrealty.com

Client Focused | Solution Driven | Commercial Realtors

What’s a Termination Clause and Why You Should Care

A termination clause in a commercial lease is a provision that allows either the tenant, the landlord, or both to end the lease agreement before its full term under clearly defined conditions. In office and industrial leases, this clause acts as a safety valve, giving both parties flexibility to respond to changes in business needs, market conditions, or property strategy.

🏢 For Tenants: Built-In Flexibility

Termination clauses are a lifeline for tenants navigating uncertainty, growth, or change. Whether you're scaling up and outgrowing your current space, downsizing due to headcount changes, or shifting your logistics strategy, the ability to exit your lease early, without legal chaos can protect your bottom line. It’s particularly valuable for growing businesses, hybrid work environments, or distribution operations adapting to supply chain shifts.

🏗️ For Landlords: Strategic Control

Landlords use termination clauses to keep their options open. Maybe the building’s being redeveloped. Maybe a higher-paying tenant is waiting in the wings. Or maybe a tenant just isn’t performing, missed payments, constant headaches, breached terms.

Having a termination clause in place allows landlords to:

• Reposition the asset

• Clear the path for new development

• Manage tenancy risk

• Adapt to market shifts

It’s not about kicking tenants out for fun, it’s about protecting the property’s long-term value.

For landlords, termination clauses can support long-term asset value. They provide the ability to reposition the property, redevelop, or bring in a more strategic tenant when the timing is right. When structured properly, with reasonable notice periods and financial protections like termination fees or TI cost recovery, these clauses reduce exposure and keep the landlord in control of their investment.

💡 Termination Clauses Work Best When They’re Balanced

Not every lease needs one but where they fit, they offer structure, clarity, and flexibility for both sides.

A solid clause should: 

✅ Clearly define the circumstances that allow for early termination
✅ Include appropriate notice periods
✅ Address compensation or penalties for the exiting party
✅ Support your business or investment strategy, not sabotage it

Ultimately, a well-crafted termination clause creates balance. It doesn’t just offer an escape route, it builds in flexibility that protects both sides when things don’t go as planned. And in today’s evolving office and industrial landscape, flexibility isn’t just nice to have it can be essential. Termination clauses aren’t a red flag, they’re a reality check. If your lease doesn’t have one? You may be tying your business to a space that stops serving you before the lease ever does.

Need help breaking up with your lease? We’ll make it cleaner than a celebrity divorce; no public drama, no messy headlines.

📩 [email protected]
🌐 williamsoncommercialrealty.com

I don’t do cookie-cutter. I do what works, for you.

Client Focused | Solution Driven | Commercial Realtors

Because Sometimes You Need a Way Out - Without Burning It All Down

Let’s be honest, businesses evolve. Markets shift. Supply chains change. Your square footage needs might look a lot different five years into a lease than they did on Day One. This is where a termination clause comes in. It’s one of the most under-discussed parts of a commercial lease, and one of the most important for office and industrial tenants trying to plan long-term without locking themselves into a space that could eventually work against them.

Let’s break it down.

🔍 What Is a Termination Clause?

In commercial leasing, a termination clause defines the conditions under which a lease can be ended before its agreed-upon expiry date. It can be triggered by:

• One party 

• Mutual agreement

• Specific scenarios (relocation, loss of a major contract, etc.)

In the industrial and office world, this clause can mean the difference between flexibility and financial deadweight.

🏭 How Termination Clauses Protect Office & Industrial Tenants

🧭 Flexibility to Pivot

The last few years have shown us just how fast tenant needs can change:

• A logistics company outgrows its warehouse

• An office tenant shifts to hybrid work and no longer needs 10,000 SF

• A key supplier or client relationship changes your operating footprint

Having a termination clause in your lease gives you a safety valve to adjust when the market, or your business, moves in a new direction.

💸 It’s Not a Free Exit

Most termination clauses for office or industrial tenants come with some form of financial obligation:

• A termination fee

• A reimbursement of unamortized tenant improvement (TI) costs

• Repayment of unamortized inducements

• Notice period (90–180 days is common)

You’ll want to do the math: Is the cost of leaving early worth the benefit of getting into a space that actually fits your business?

🧨 Beware the Landlord’s Termination Right

Sometimes it’s the landlord who has the power to terminate, especially in older industrial areas targeted for redevelopment, or in under-utilized office buildings slated for conversion. If your lease gives the landlord the right to pull the plug early for redevelopment or sale, you need to understand the timeline, the notice period, and your rights. You don’t want to be caught off guard.

💼 Why Landlords Include Termination Clauses

🏗️ Future-Proofing the Asset

Termination clauses give landlords optionality, especially in fast-changing areas such as:

• Redevelopment corridors

• Transitional employment zones

• High-demand logistics hubs

Maybe a higher-paying tenant comes along. Maybe zoning changes unlock new value. A well-structured termination right lets them adapt without being handcuffed by existing leases.

📉 Downside? Vacancies = Lost Income

Termination rights (especially for tenants) can result in:

• Gaps in occupancy

• Downtime between tenants

• Additional leasing and marketing costs

That’s why landlords typically balance this with:

• Long notice periods

• Financial penalties

• Strict conditions that must be met before the clause kicks in

But offering this flexibility can also attract tenants who otherwise wouldn’t sign a long-term deal. Strategic give-and-take.

📌 What to Include in a Smart Termination Clause

Whether you’re negotiating a new lease or renewing an existing one, keep these essentials in mind:

🔹 Clear Triggers

Spell out exactly when and how the clause can be used. Vague language = legal grey zones.

🔹 Notice Period

Standard is 90 to 180 days. Enough time to sublease, relocate, or shut down operations properly.

🔹 Termination Fee or Compensation

Make sure both parties are covered financially if the lease ends early.

🔹 Mutual Agreement Option

Include a clause that allows for early termination if both sides agree. Sometimes flexibility benefits everyone.

Final Word:

A termination clause isn’t just a legal formality, it’s a business tool. For office and industrial tenants, it means you’re not trapped in a space that no longer fits. For landlords, it’s a way to future-proof the asset and attract tenants in a market where flexibility is currency. The key is balance. You need protection and clarity so that when it’s time to exit, it’s clean, fair, and drama-free.

📩 Not sure what your lease actually says about termination?
Let’s take a look—before you end up stuck in a space that’s working against your business.

Susan Williamson
Commercial Realtor – Williamson Commercial Realty

✉️ [email protected]

I don’t do cookie-cutter. I do what works, for you.
Built for business. Backed by data. Negotiated with bite.

Client Focused | Solution Driven | Commercial Realtors

What Is Exclusive Use in Commercial Real Estate?

(And Why It Might Be the Most Underrated Clause in Your Lease)

If you’re leasing commercial space—especially retail—there’s one small clause in your lease that could have a huge impact on your business:

👉 Exclusive Use: It’s one of the most powerful tools a tenant can negotiate—and one of the most misunderstood.

🧾 So, What Is Exclusive Use?

In simple terms, Exclusive Use is a clause in a commercial lease that gives a tenant the sole right to offer specific products or services in a property. It prevents the landlord from leasing to another tenant who would compete directly with that business.

🔍 A Real-World Example:

Let’s say you run a bakery. You negotiate an exclusive use clause that restricts the landlord from leasing space to another bakery, café, or business selling baked goods.  That means no croissant competition next door. No donut wars down the hall. You get protected territory and peace of mind.

💡 Why It Matters for Tenants

Tenants often invest heavily in their space before they even open the doors—buildout, branding, equipment, staffing. That kind of upfront investment needs protection.

An exclusive use clause helps ensure:

• You’re not suddenly competing with the same product two units over

• Your brand identity isn’t diluted

• Your revenue potential isn’t undercut by direct competition

If you’ve invested in becoming the go-to fitness studio, burrito shop, or boutique skincare bar in the complex exclusive use helps keep it that way.

🧠 Why It Matters for Landlords

Done right, exclusive use isn’t a tenant power grab—it’s a smart landlord strategy.

It helps:

• Attract quality tenants with stronger commitments

• Create a smart, balanced tenant mix

• Encourage customer loyalty and cross-shopping

• Boost long-term property value

No one benefits from three bubble tea shops battling for foot traffic in one plaza. A well-thought-out tenant mix drives traffic and revenue across the board.

📌 Key Things to Keep in Mind

Scope:
Be specific. “Exclusive right to sell coffee” is different from “exclusive right to operate a café.” Ambiguity leads to conflict.

Existing Tenants:
Exclusivity typically doesn’t override existing leases. Make sure you know what’s already in place before signing.

Enforcement:
Tenants should ensure the clause includes remedies if it’s breached. Landlords need to track and manage all exclusives to avoid overlap.

🧾 When to Negotiate Exclusive Use

The best time?
📍 When signing a new lease
📍 When renewing a lease
📍 When expanding into a new unit

It’s much harder to ask for exclusivity after your competitor shows up next door.

Final Word:

Exclusive Use clauses protect tenants, support landlords, and create better-performing properties. They’re small clauses with big consequences—and they should never be overlooked.

Have questions about exclusivity in your lease?

Let’s make sure your business is the only buzz in the building (or at least the only one selling espresso).

📩 [email protected]
🌐 williamsoncommercialrealty.com

I don’t do cookie-cutter. I do what works, for you.

Client Focused | Solution Driven | Commercial Realtors