IS THIS RENT INCREASE NORMAL? THE GREATER OF 5% OR CPI EVERY YEAR
I'm in the process of negotiating a lease renewal as part of a transaction. It is a retail business in a popular location in Florida. The real estate company is proposing a rent increase to market price AND they are proposing an annual rent increase of 5% or CPI, whichever is greater. The length of the lease is 10 years.
A 5% increase every year for 10 years seems high. What's typical or how should I negotiate?