Lease Renewal
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of the building condition and the long-term lease with automatic rent increases, now below current market rates, were outdated.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:
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Responsibility for maintenance and repair obligations being transferred to the Landlord moving forward,
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Avoidance of approximately $900,000 immediate foreseeable capital expenditures,
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Removal of the client’s exposure to future unforeseen costs resulting from code upgrades,
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$60,000 free rent.
