PrintIf you do decide to lease, you'll need to give some consideration to how long you want the lease to remain in effect. The ideal lease length is one that matches the business needs of both the owner and the occupant. Unfortunately, these two interests do not usually coincide. Tenants typically want flexibility, which translates to a shorter lease. Landlords generally want longer leases that help secure better financing.
Tenants with predictable, stable occupancy needs should seek longer leases in order to get more favorable rates. Tenants who are growing quickly should try to secure leases that allow for either expansion rights or the ability to sublease their space or cancel the lease with renegotiated fees.
Lease terms for retail tenants usually run the longest — they can sometimes exceed 25 years! Office and warehouse lease terms average five to 10 years. Tenants can usually negotiate one to two lease options extending lease terms for five years each.
