Yet despite being an owner’s market, tenants are becoming increasingly demanding when it comes to the terms of a lease, including the annual escalation.

"Everything is negotiable these days and owners are often willing to compromise for the sake of a financially sound, credit-worthy tenant with good references.

"In today’s financial climate, winding up with the wrong tenant is a real risk."

He also advises re-checking a tenant’s financial situation each year when the lease is renewed.   "People’s financial situations can change rapidly in the current economy."