Maximizing Renewals

I’ve had an unusual amount of questions regarding renewals lately so here goes:

My top tips on maximizing renewals…

Market Knowledge:

As in new leases or renewals, your market knowledge is KEY!! Knowing if: 1. your pizza guy could relo to a nearby center for cheaper rent, or 2. if a neighboring landlord would be willing to turnkey  their pizza place or 3. the neighboring center would be better ingress and egress for 4. the delivery guy or 5. if the location has much better visibility for the brand- is CRUCIALLY important when evaluating the renewal.

Cost to relocate:

If the tenant (think restaurant, salon or medical) 1. has significant infrastructure and it would be very expensive for them to relocate, it’s very important to analyze vs 2. if it’s a cell phone store and they could easily and cheaply relocation.Do you even want this tenant to renew this particular tenant or particular use? Are the tenants’ sales matching your centers’ mix or is it a mismatch? If the tenant is out of options, you don’t HAVE to automatically renew them. Yes, it is more work to find a backfill but our job is to maximize the value of the center and if the use no longer mixes well with the new ten mix or their sales are not, it may be time to invite them to find another location. 

Rates: 

Sales knowledge and occupancy cost ratio is imperative when determining the new rents. If the tenant is paying $25psf, and the new lease market is $28, but the tenant’s occupancy ratio is 4% and it’s a pizza guy, then you could present very comfortably and confidently an 8% occupancy ratio. Yes, that would double his rent and be much higher than the market rents in your center but He CAN afford it. Now would I do it? If you know me, you know I would, especially if I evaluated the rest of the market and knew they couldn’t relo anywhere else, or if they did it would cost a few hundred thousand to do so. Now maybe practically I’d only raise them to $40nnn but my major point is I WOULD NOT SEND A RENEWAL AT A 3% INCREASE! Would the tenant leave your center when he has an over-performing store for an increase of $1500 per month – I think not (even if it’s a 37% increase in rent!)

I would NOT do this with uses that have zero infrastructure and could relo very inexpensively. The infrastructure in the space makes it a very important factor with this process.

Multiple leases expiring at the same time

(developers read: please stagger lease terms on ground-up developments when possible) 

One time I literally had 14 leases expiring the same year in a Publix anchored center. Luckily we had done a great job collecting sales so I knew who was doing well and who was not. We started 12 months in advance and worked on the tenants who had significant infrastructure in their spaces. (All of the renewals were set to renew at market rents.) We renewed all of the medical users such as dentist, urgent care and optometrist first. Then we renewed the Italian restaurant, sub shop, and Chinese restaurants next. By the time it had come to 90 days before expiration, we had renewed 80% of the expiring tenants and had set precedent on the “market” rents. Two of the tenants who did not have significant infrastructure did relo for cheaper rents. But luckily we backfilled them quickly. 

Knowledge of market and sales is crucial when faced with multiple expirations at the same time. 

My last tip is:

Making sure you know what uses are doing well in your market and those that are not. Having coffee with your neighborhood leasing agents on a regular basis will help with this updated market knowledge. This will help when evaluating which concepts to keep and which to let go. 

 

Share

Blog Comments

More Posts

Don’t Overcome Objections – Use Them to Close

Old-school sales training teaches you to memorize scripts to overcome objections. But Rockstars know: if you’ve asked the right questions and listened throughout the leasing process, closing should feel natural — not scripted. Still, objections will come. And guess what? Objections mean they’re interested. If they weren’t, they wouldn’t still be talking to you. So don’t panic. Don’t get defensive. Instead, validate the concern and keep the conversation going. For example: Prospect: “This center doesn’t get much traffic.”You: “You’re right. Let me ask — how do you usually attract customers? Foot traffic or marketing?” You’ve already matched their needs to your space, so most objections are just hesitation — not deal breakers. Don’t negotiate with yourself. Just re-engage the prospect with more questions, and when you’ve addressed their concerns, present the LOI with options: “Here’s the paperwork. You’ll see it covers your X concern with an option to do Y or Z. Which would you prefer?” By giving them a choice, you empower them to say yes.

Read More

How to Answer “Why Should I Lease From You?

At some point, your prospect will hit you with the classic question:“Why should I lease your space instead of [insert competitor]?” Most leasing agents jump into defense mode.Wrong move. Listing off your property’s features (“We’ve got X, Y, Z…”) sounds salesy. And the second you start selling, you lose your positioning as a trusted advisor. Rockstars know better. Instead of defending, go back to asking. Revisit their needs: “You mentioned visibility, traffic, and proximity to the university were your top priorities. Do you think this space hits those marks?” That’s how you lead them back to their priorities — not your pitch.You keep the conversation focused on what they care about and whether you can help them achieve it. This simple redirect does two things: Pro Tip: The more you ask, the more they’ll talk. And the more they talk, the more they’ll sell themselves on your space.

Read More

Rockstars Don’t Waste Showings

Showings are rare and valuable — don’t waste them. Unless you’re brand new and using the opportunity as a “dress rehearsal,” every showing should be intentional and strategic. That means you plan like a pro. Review your qualifying call-in sheet, research your prospect’s business, and tailor your pitch to highlight benefits that directly solve their pain points. Know your market cold — and especially what makes your space stand out against the competition. It builds credibility fast when you can rattle off specs and comps like you live and breathe this stuff (because you do). Anticipate objections but don’t script your answers. Be real. Know your stuff. And if you haven’t yet seen the prospect’s financials or projections, ask before the showing so you can speak to their occupancy health ratio with confidence. Pro Tips: Day of Show:Arrive early. Bring a flashlight, doorstop, and most importantly, your listening ears. Crack the back door, air out the space, and create a clean, professional vibe. Then listen. If you’ve done it right, your prospect might just say, “This is the only center I want to be in.” That’s a Rockstar moment.

Read More

Stop Quoting Rent – Start Giving It

Here’s a mindset shift: you don’t quote rent, you give it. Why? Because quoting sounds negotiable. Saying “We’re asking $40/sf” instantly invites haggling. But saying, “The rent is $40/sf” sets a tone of confidence and finality — like a gift, not an opening bid. This isn’t just semantics. When you quote, you’re subconsciously signaling that the number is flexible. When you give, you’re anchoring the rate in certainty and professionalism. Let’s back up: the entire first part of your call with a prospect is about them — asking smart questions, learning about their business, needs, and funding. You’re qualifying. Listening. Gathering intel. But the rent? That’s your moment to speak with clarity and confidence. It’s the only part of the call where you’re in control of the narrative. No hesitation, no disclaimers. Say: “The rent is $40/sf.”Don’t say: “We’re asking $40/sf” or “It’s about $40…” That tiny tweak will help you hold the line, protect your value, and avoid losing leverage. Remember: Rockstars don’t negotiate their worth. They deliver it.

Read More

Beth's Resources

Beth has established a reputation for “giving back” and creating a legacy of helping others. To support this mission, she offers a wealth of FREE resources for individuals in the retail leasing industry, whether you’re a newcomer or a seasoned professional. Her collection includes case studies from her nearly 40 years of experience, providing practical insights and guidance. With Beth’s resources, you’ll gain valuable tools to navigate the complexities of retail leasing and achieve your professional goals.

E-News

Subscribe to the Beth Azor e-news to stay up to date with commercial real estate trends, events, and expert advice.

We promise, no spam. Just great content.

E-News

Subscribe to the Beth Azor e-news to stay up to date with commercial real estate trends, events, and expert advice.

We promise, no spam. Just great content.