I would not read 2.7% as a market shift until the asking and sold figures are matched property by property. Current listings and completed transactions represent different groups and possibly different decision dates. Also, does 107 days mean from first listing to agreement, completion, or...
I’d first verify the comparables and inspect what refurbishment would really be needed. Then approach the tenant well before any valid notice deadline with a specific, moderate proposal and the reasons for it. If they decline, you still have time to choose between holding the current rent and...