You own a small office building that caters to local professionals who use 1,200 square feet of space, on average. Most of them have five-year, fixed-rate leases that will be maturing over the next two years. You have noticed tremendous residential development growth in the area in the past year, but it is all bedroom community development with very little retail space. What should you consider when drafting new leases for your tenants?

A)

That local government will have to build more schools, roads, water and sewer lines, among other things, but without any increase in sales taxes

B)

Nothing other than normal rent increases for the next term

C)

That traffic congestion might affect occupancies

D)

Implementing greater rent increases than before because more rooftops mean more business for your tenants, and they can afford higher rent