Services  >  Emergency Rent Relief Program  >  Rent Restructuring

3. RENT RESTRUCTURING

A Rent Restructure Program is essentially a renegotiation of your lease, whereby the tenant offers the landlord an early extension of the lease term in exchange for an immediate reduction of rent, from now until the end of the current term. For example, if you have 3 years left on your lease at a NET rental rate of $12.00 psf, you offer the landlord to add an additional 3 years of term in exchange for an immediate rent reduction to $9.00 psf. The result is a 6 year committed lease term at $9.00 psf instead of 3 years at $12.00 psf.

The implications:

TENANT

  • Rapid cost reduction.

  • Secure a lower rental rate for a longer period of time.

  • Maintain your lease in good standing.

  • Longer term commitment.

  • Requires resources to plan, coordinate, and execute.

LANDLORD

  • Secure a longer term commitment from a good tenant.

  • Mitigate rental loss during uncertain economic conditions.

  • Build goodwill and partnership with tenant.

  • Stabilize long term income and increase property value while facilitating financing.

   EMERGENCY RENT RELIEF PROGRAM  

Rent reduction can be a very impactful solution both in the short and long term. By extending your lease beyond what was originally agreed, you are providing more revenue for your landlord than originally expected and this creates leverage for you in a negotiation.

 

Not only can you  reduce your rent now, allowing for rapid cashflow preservation, you can also secure lower rental costs than if you were to negotiate a renewal at a future date. For this to be a feasible option, you must be confident that  the locations adequately serves your operation for the long term.

For more information
on Rent Restructuring:
contact us at 1-800-444-4919
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