Think You’re Stuck In Your Lease? Think Again
Unlike RELOCATION, whether your lease is about to expire or not, you may be able to renew your lease now. Renewal may be appropriate if you need something smaller, larger or more efficient – or less expensive. Renewing early may be a chance to restructure your lease to alter your physical space and/or reduce your rent expense.
Just like RELOCATION though, it can be a daunting task to renew your lease.
A significant percentage of our business is in renewing tenants’ leases, often a couple of years before the official expiration date and often with immediate savings as compared with current contract rent. The ‘art’ is that we know how to show your landlord that renewing your lease at the current ‘market’ rent, including the refurbishment allowance, may be better than the deal they would make with a replacement tenant.
Just like relocation, it can be a daunting task to renew your lease. You need an expert to renegotiate your lease on YOUR terms.
Here’s Our 4-Step Lease Renewal Process
For each client, this is a unique process that meets your needs. Below are the typical steps in our Lease Renewal Process:
Step 1: Create a Team
Each project is unique, so each needs the right team. At a minimum, your team needs to be made up of:
- Wally & Co. as your tenant representative
- Your firm’s legal counsel
- Appropriate members of your firm’s executive team (including CEO, CFO, HR, IT)
Step 2: Visioning & Planning
The process begins with comprehensively understanding what you want and need in the renewed facility. The deeper we understand your culture, history, strategic plans, workplace needs, space needs and the like, the better equipped we are to create and evaluate real estate solutions that work for you.
Step 3: Evaluation
The RFP we use is designed to do much more than just get an economic proposal. In addition to economic components, our RFP is designed to pre-negotiate the other terms of the deal. These include:
- All lease and legal provisions
- Flexibility options (options for renewal, expansion, cancellation, contraction)
This approach adds value in the following ways:
- Landlords/developers are never quite as aggressive as they are at the proposal stage
- The depth of information we receive at the front end of the process allows us to accurately analyze the financial components of the proposals, and helps us avoid surprises later
- The depth of information allows us to make more reliable financial analyses of the proposals
- The pre-negotiated legal terms will save on legal fees and save time in documenting the deal
Step 4: Execution
This step involves the whole team – Wally & Co., your executive team and your legal counsel – to draft contracts that accurately, and completely, document the transaction.
Unlike many brokers, we will be energetically involved in the entire negotiation process, including deal execution. This is not something we ‘’leave to the attorneys.” This is the step where the final agreements are made and final negotiations take place.
