Tenant Lease Renewal/Option Exercise
If you have an option to extend or expand in your existing lease, we can help you to capitalize upon the situation by ensuring that pricing and terms of your option are consistent with the marketplace. Oftentimes, an option may be at a fixed rate or tied to some type of index, such as the consumer price index (CPI), which may not accurately reflect the current market and, thus, work against your best interests while greatly benefitting the landlord. Landlords will nearly always attempt to enforce the option exactly as it exists while, in reality, there may be an opportunity to re-negotiate the terms of the option. It is important to remember that a landlord’s primary goal is to maintain high levels of occupancy and, thus, might be willing to make substantial concessions to facilitate your business remaining in its space on better terms than contemplated by the option. Successful landlords understand that long-term tenants are the key to long-term profitability in commercial real estate. Therefore, while an option may seem to be “black and white” in the lease, we can and have successfully renegotiated many options to conditions far more favorable to our clients in terms of financial savings and other lease modifications that will benefit your business in the future.
If you don’t have an option to renew but would like to remain in your existing location, we can serve as your advocate and intermediary with the landlord or the landlord’s broker in any renewal negotiations. Our familiarity with the market and the overall process will ensure that, as with an initial lease, that the terms of your renewal are consistent with the market and with all concessions that landlords are offering to new tenants. Landlords often believe that they have a substantia amount of leverage in renewal negotiations as tenants can be reluctant to move or relocate an existing business. Our position as an advocate and intermediary can mitigate or neutralize this issue in that the lack of direct negotiation between yourself and the landlord doesn’t provide them with insight as to your other options, willingness to relocate, etc.