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of the building condition and the long-term lease with automatic rent increases, now below current market rates, were outdated.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:

  • 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.