Updated October 2026 · By Tom Koelzer, Co-Founder & Managing Partner, and Dave Ven Horst, Co-Founder & Managing Broker, Tenant Advisors, Inc.
An early lease renewal lets an office tenant renegotiate before its lease expires, while the market favors tenants. For an 8,000-square-foot office tenant in Schaumburg, Tenant Advisors negotiated a blend-and-extend more than two years before expiration. Net rent dropped 18% immediately, and the tenant secured more than $140,000 in rent abatement and construction allowance. Tenant Advisors, Inc. has negotiated more than 2,000 office leases for Chicago-area tenants since 2004 and represents tenants only, never landlords.
Key Takeaways
- You don’t have to wait for expiration. A soft market gives tenants leverage to reset rent years early.
- In a blend-and-extend, the tenant adds term and the landlord lowers today’s rent to market.
- This tenant’s rent dropped from $19.50 to $16.00/RSF net, effective 26 months before its lease expired.
- The deal added 2 months of abatement plus a $12.50/RSF allowance that converts to rent credit if unused.
- A fair-market renewal option set by the landlord is a weak fallback. Negotiating early beat waiting for it.
- The landlord paid Tenant Advisors’ fee. The tenant paid nothing for representation.
What Was the Tenant’s Situation?
Tenant Advisors placed this company in its Schaumburg office in 2020 on an eight-year lease running through June 2028. Fixed annual increases had pushed net rent to $19.50/RSF by 2026, above what comparable space in the Northwest Suburbs was leasing for. Schaumburg office vacancy sits at 33.1% across the 51 multi-tenant buildings we track, so landlords are competing hard to keep tenants.
The lease included one five-year extension option, but at a fair market rate the landlord would determine, exercisable only 12 to 14 months before expiration. Waiting meant two more years of above-market rent and a renewal rate set by the other side.
What Is a Blend-and-Extend?
A blend-and-extend is an early renewal in which the tenant commits to a longer term now, and the landlord blends today’s lower market rent into the remaining years of the lease. The landlord secures a tenant and avoids vacancy risk. The tenant stops overpaying immediately instead of waiting for expiration. It works best when vacancy is high, the tenant’s rent is above market, and the tenant plans to stay. For more on building leverage without moving, see how to create renewal leverage.
What Did Tenant Advisors Negotiate?
| Term | Before | After |
|---|---|---|
| Net rent | $19.50/RSF | $16.00/RSF (18% reduction) |
| Rent reduction effective | — | May 2026, 26 months before expiration |
| Lease expiration | June 2028 | August 2033 |
| Annual escalations | $0.50/RSF | $0.50/RSF |
| Rent abatement | None | 2 months net rent plus operating expenses and taxes |
| Construction allowance | None | $12.50/RSF ($101,625), convertible to rent credit |
| Total concessions | — | Over $140,000 |
| Extension option | One 5-year option, expiring 2028 | One 5-year option, carried to the new term |
The tenant also kept its parking, conference room rights, and storage space at existing terms.
When Should a Tenant Consider an Early Lease Renewal?
The best window is two to three years before expiration, especially when:
- Your current rent is above market
- Vacancy in your submarket is elevated
- You plan to stay in your space
- Your renewal option leaves the rate to the landlord
If you’re unsure whether staying or moving costs less, our renewal vs. relocation analysis compares both on a net-effective basis. See also our office lease renewal negotiation service and the Schaumburg office market guide.
Frequently Asked Questions
What is an early lease renewal?
An early lease renewal is a lease extension negotiated before the current term ends, usually to capture current market rent and concessions sooner.
Does a blend-and-extend cost the tenant anything?
The tenant commits to a longer term. In return, rent drops now and concessions are added. The landlord pays the tenant representative’s fee, so representation costs the tenant nothing.
Why not just wait and use the renewal option?
Most renewal options are priced at fair market rent as determined by the landlord and can only be exercised close to expiration, usually with no new concessions. Negotiating early keeps leverage on the tenant’s side.
How much can a tenant save with an early renewal?
It depends on how far above market the current rent is. In this case, rent reset 18% lower immediately and the tenant added more than $140,000 in abatement and allowance.
Is Your Rent Above Market?
Send us your lease expiration date, building, approximate square footage, and current rent. We’ll tell you, confidentially, whether an early renewal makes sense. Benchmark your lease against the market or call (847) 778-0296. The landlord pays our fee.
About the authors: Tom Koelzer and Dave Ven Horst co-founded Tenant Advisors, Inc. in 2004 after senior landlord-side brokerage careers; Tom has been in Chicago commercial real estate since 1986 and Dave since 1985. The firm exclusively represents office tenants across the Chicago metro and has negotiated more than 2,000 office leases. More engagements are on our Results page.