We are subleasing a part of commercial real estate (medical office in Brooklyn, NY), and now that 1 year is over, the landlord want to increase the rent by 5%. They claim that their landlord increases their rent by 5% every year and this is normal for commercial RE, "everybody does that".
This does not sound reasonable on the face of it (e.g., inflation is way below 5% ATM), but maybe there is something I don't know.
So, what do I do? Is it really true that cre rent goes up by 5% every year or are they bluffing? Should I expect the same 5% annual increase from all landlords?