How strategic client advisory helps landlords strengthen asset performance
At Rockwell Commercial, lease renewal and renegotiation services are an important part of our client landlord advisory practice. Our team supports property owners by helping them review existing lease terms, assess market conditions, and negotiate outcomes that align with their long-term real estate strategies.
Recently, we completed five lease renewals on behalf of landlords, including four office/medical tenancies and one street-front retail tenancy.
Negotiated Outcomes
Across these transactions, Rockwell Commercial assisted landlords in securing rental rate increases of 23%, 28%, 42%, 61%, and 86%, with each renewal including annual rental escalations. These renewals were completed based on current market conditions, tenant profiles, and each building’s operational and financial requirements.
Added Value Through Lease Review
During one renewal, a detailed review of the pre-existing lease revealed that the building had not been formally measured at the lease commencement date. Because the lease allowed the landlord to verify rentable area, a new measurement was completed and found the premises to be approximately 17% larger than originally stated. This clarification of rentable area resulted in an adjustment that more accurately reflected the premises and its rental value.
Strategy & Market Intelligence
Our lease renewal approach is supported by market research and due diligence, including:
- Detailed lease analysis
- Comparable market review
- Consideration of current economic conditions
- Insight into asset-specific and sector-specific trends
The cumulative increase in the Consumer Price Index (CPI) in Canada from 2020 to 2025 is approximately 18.14%, based on Statistics Canada data. In these transactions, the rent increases negotiated by the landlords exceeded CPI—reflecting market dynamics, construction costs, availability of space, and the value of maintaining stable tenancy rather than indicating any guaranteed future outcome.
Market Insights From Recent Renewals
The following observations reflect circumstances present within these specific transactions:
- Each landlord initially approached renewal discussions without representation.
- Four of the five leases took place as part of the sale of the tenants business that included leasebacks.
- All original transactions occurred during the COVID period.
- Construction and leasehold improvement costs have risen at a faster pace than CPI, making relocation less feasible for many tenants.
- Limited availability of comparable space and higher new-build construction costs supported renewal rents that outperformed CPI.
These factors contributed to favourable outcomes for property owners, including reduced vacancy risk, stronger rental performance, and the retention of long-term tenants.
Considering a Lease Renewal?
If you are a property owner reviewing an upcoming lease expiry or seeking assistance with renegotiation, Rockwell Commercial’s leasing advisory team can provide support based on current market data and your asset’s goals.
Contact Rockwell Commercial Real Estate, Brokerage to learn how we can assist with your lease renewal strategy.
