The current economic downturn has resulted in historically high vacancy rates in most markets and sub-markets, which presents an opportunity to re-negotiate a lease in the favor of the tenant. Landlords are anxious to both fill vacant space and to ensure the retention of existing tenants. For tenants, the upside can be achieved via “blend and extend”(renewal) amendments to a lease, which provide for downward adjustment in existing rates, as well as the chance to lock in those better rates for a longer terms going forward.
$.75 Could Save You Thousands!
The profitability of your business is directly impacted by the cost of leasing office space – your occupancy cost. A $.75 difference in rent on a 10,000 square foot office lease over a five (5) year lease term is $37,500.00 off the bottom line. Wouldn’t you rather keep that money?
365 days a year Landlords negotiate leases how often do you? Most likely every five years.
To achieve the most aggressive lease transaction, you need to sit at an even negotiating table with Landlords. The leasing of office space is the Landlords business. The Landlord is fully informed as to the terms of the market place, are you? You would never go into court permitting the opposing party to represent your interest, or into an audit without your accountant, why would you go to the real estate negotiating table alone?
Start Early!
While most office leases provide for a tenant’s renewal notice to be submitted no later than nine to 12 months prior to the current end of term, the best period for “blend and extend” negotiations is typically 18-24 months in advance.
We are the best deal in town!
Our services are paid by the Landlord. The commission paid by the Landlord is either paid entirely to the Landlords leasing broker (without a tenant rep) or split with the tenant rep. The fee is paid regardless if you are represented or not, there is no cost savings to a tenant by not having your advocate protecting your interest. Be sure to secure a tenant rep that is knowledgeable of current market conditions, has excellent negotiating skills, and a good reputation among his peers. Contact Mike Kushner at Omni Realty Group to find out how he can save you money.
Don’t go to the table alone!