Property Management
A NJ commercial property manager handling a lease renewal negotiation for an existing tenant should prioritize:
AMaximizing rent regardless of market conditions
BBalancing the owner's need for market-rate income with tenant retention, considering vacancy costs and current market comparables✓ Correct
CAlways accepting the tenant's first offer
DReferring all negotiations to the owner without any analysis
Explanation
Effective commercial lease renewal negotiations weigh market rents, the cost of vacancy (tenant improvement allowances, broker fees, lost rent), and tenant creditworthiness, balancing the owner's income goals with the practical value of retaining a good tenant.
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