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Lease Renewal

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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.

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Immediate needs included: new HVAC system, replacement of roof membrane, LED lighting upgrades, and more.

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of the building condition and the long-term lease with automatic rent increases, now below current market rates, were outdated.

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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,

• 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.