The Native Realty CEO spoke with the national commercial real estate publication about the current dynamic between tenants and landlords in uncertain times. Sturgis noted that some tenants are taking advantage of the uncertainty by locking in long-term leases at more favorable rates.
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“Landlords want to know that the tenant is well-collateralized and personally guaranteeing the lease with an entity of substantial worth,” Sturgis said, adding that tenants are often intent on securing renewal terms and controlling expenses where they can. “We often see renewal options negotiated at the onset of the lease and a cap on controllable expenses within reason,” he further clarified.