COST SAVINGS THROUGH LEASE NEGOTIATION
Our client was obligated by a twenty-year lease which stipulated they were responsible for maintaining and replacing all components of the building.
Immediate needs included: new HVAC system, replacement of roof membrane, LED lighting upgrades, and more.
The life cycle of the building condition and the long-term lease with automatic rent increases, now below current market rates, were outdated.
The results of a yearlong negotiation process included:
Responsibility for maintenance and repair obligations being transferred to the Landlord moving forward,
Avoidance of approximately $900,000 immediate foreseeable capital expenditures,
Removal of the client’s exposure to future unforeseen costs resulting from code upgrades,
$60,000 free rent.