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c/commercial-real-estateaaron197aaron1975d agoProlific Poster

Can we talk about how I was pricing lease renewals all wrong?

I had this moment about two months ago when a tenant who's been in my building for 8 years came back with a spreadsheet. She broke down how my proposed renewal rate was like 15% above what similar spaces were going for in our area near downtown Austin. I always thought I was being fair by just adding 3% each year like my old boss taught me. But she showed me three listings from brokers down the street with better amenities for less money. I felt pretty dumb because I never bothered to check what the market was actually doing for renewals. Now I look at comparable spaces every 6 months instead of just rolling with what worked before. Has anyone else had a tenant school them on their own pricing like this?
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2 Comments
rowan_hayes
Right there with you Patricia_Rodriguez, getting schooled by a spreadsheet is a humbling wake-up call for sure.
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patricia_rodriguez
3% each year" got me too. Now I check rates quarterly.
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