RESOLVING ISSUES RELATED TO LANDLORD AND SUBTENANT
Our client has historically been unable to secure a long-term lease commitment with the landlord given this landlord’s desire to control the premises (i.e. retain flexibility to terminate the client if they ever decided to re-develop the site). Additionally, our client’s subtenant (franchisee) had defaulted on rental payments to the client and insisted on the client leasing the entire building (thus requiring a subtenant for half the building). After having pursued an interesting relocation alternative, it was deemed to be too expensive with reduced access and less exposure.
Landmark contacted the subtenant’s corporate head office to advise them we would not be renewing their sublease due to default of payments by their current franchisee. Landmark also engaged the landlord in renewal discussions leveraging relocation to reduce rental rates for the renewal. Through intense negotiations, the subtenant committed to new franchisee for the sublet premises with a corporate guarantee.
Through intense negotiations, the subtenant committed to a new franchisee for the sublet premises with a corporate guarantee. Consequently, Landmark negotiated a renewal of its client’s lease for 7 years thus protecting their position in this market while reducing costs and increasing security of the subtenant due to the corporate guarantee.