Is the business new, or does it have years of operation under its belt? This is important because if the business is a startup that isn’t yet stable or producing consistent income, then a longer lease is risky for both the landlord and the tenant.

Some warehouse locations offer great convenience and access to resources, whereas others are located in less ideal locations. There’s higher demand for warehouses in enviable locations, so these tend to be leased for longer periods.

Tenants who get the most concessions from their landlords are usually those who sign longer leases. Such concessions can include anything from free rent to rights of first refusal or improvement allowances.

Landlords don’t want to worry about finding tenants. So if a tenant is willing to agree to longer commercial lease terms, a landlord is usually more willing to reduce the rent. Conversely, if a tenant only needs space for a short length of time, there will likely be a higher monthly rent for the convenience.