Whether you are leasing space in a strip plaza, office building, shopping mall or industrial warehouse and whether you're a retailer, franchisee, chain store or healthcare professional, you eventually have to face a lease-renewal negotiation with the landlord. When starting with the end goal in mind, planning far enough in advance and getting some professional help with this matter, the process can turn in the tenant's favor.

Approximately 2 million lease-renewal transactions take place every year in North America, and most landlords push for a rent increase on a tenant's lease renewal term. This is normal and something you should anticipate. A lot can transpire in a five- or 10-year lease term between when you moved in and when you need to negotiate your lease renewal.

We would like to debunk three common lease-renewal myths in this article:

Myth 1: You must exercise your renewal option to extend your lease

You may mistakenly believe that the only way to renew your current lease is through your renewal-option clause. This is one of the most common misconceptions tenants have.

If you exercise the renewal option clause, everything except the rental rate would be off the table for negotiation. Your renewal option, if you have one, must be viewed as a safety net or backup plan. All renewal term negotiations should be done well in advance of your current term expiring.

If the landlord is unwilling to negotiate with you or you are unable to achieve your desired terms, that's when you should consider exercising your renewal option. When playing lease-renewal cards in the right order, it is possible to negotiate for all kinds of inducements and changes that you were not aware of when you first signed your lease agreement.

Myth 2: Rental rates can only go up

We hear this all the time from tenants: "The landlord wants an increase on my lease-renewal term."

Of course the landlord wants a rent increase, but this doesn't necessarily mean he's going to get it. Rental rates vary across the country and from property to property. We remember negotiating a lease renewal rent reduction for one tenant of approximately 45 percent — a savings of over $300,000 in rent over the next five years.

Myth 3: Landlords won't provide inducements on renewals

Typically, inducements (or leasing incentives) include free rent, tenant allowance and landlord's work to the premises. Business owners are shocked in most cases to learn that these inducements are also potentially available on lease-renewal terms.

Although it's true that most landlords tend to take their existing tenants for granted, it can be argued that any inducements or incentives the landlord is prepared to pay to acquire a new tenant can also be offered and available to existing tenants on their renewals, because the existing tenant is the proven, long-term customer of the landlord.

Of course, you have to know how to ask for incentives to get them; the landlord won't graciously offer them out of goodwill.