Tuesday, December 11, 2018
 
EVANS & ASSOCIATES / ATWELL DESIGN
Renewal
1,763 Rentable Square Feet
 
Situation
Tenant had been in their current space for over ten years, each time renewing on an as-is basis. Three months remained on their lease with an option to renew at an above market, fixed rate. The current lease had no termination, assignment/subletting, expansion, or renewal rights. Prior to OMS’ involvement, there were no tenant improvements offered, caps on operating expenses, and the Tenant was led to be believe that the installation of a sink in the break area was not feasible.  

Approach

  • Achieved a 20% rental rate reduction from terms initially offered.
  • Secured the following rights previously unavailable to Tenant:
    • Right to Sublet/Assign the premises
    • A Termination right after the 3rd year of the 5 year renewal term.
    • Two (2), renewal options
    • Improvement allowance for new sink and painting of the premises.
    • Nullified Landlord’s relocation right

Results

  • Immediately created competition for the Landlord by identifying alternate properties that could accommodate the needs of the Tenant.
  • Created leverage with the current landlord by securing more favorable market rates and concessions from competitive properties in the Central Business District.
  • Differentiated Tenant based upon their history and payment performance to secure addition concessions and below market rates for their current property.