When a tenant calls a landlord directly during their lease renewal, it immediately reduces leverage.  

When a landlord is contacted by a third party advisor, it signifies some important points:

  • We are prepared and have allocated expert resources to this process. Our consultants will be obtaining local market information, comparables, and relocation opportunities to help us evaluate our options.

  • We understand that even a 5% change in renewal rents over a lease term can mean hundreds of thousands of dollars to our bottom line - net of advisory fees.

  • We understand that a lease is a perfect time to reflect on our requirements and plan for the future accordingly. Even small efficiencies in space can provide large savings.

  • Our advisors won't be waiting until a few days before (or after) our renewal notice date and lose all leverage as a result.  They'll be prepared with information well in advance (see below).

  • We recognize that negotiations can be protracted and we'd like to focus on our core business while preserving our personal relationship with our landlord / partner during and after negotiations.

  • We recognize that the renewal lease terms we achieve should be approximate the same as the landlord would achieve to retain a similar backfill tenant.  Only experienced consultants like Orange can provide that for us.  We recognize that my realtor buddy, employee or listing agency cannot deliver that same level of dedication, info & leverage.

Experts start the renewal process
2 years prior to the end of a lease

Provision of lease abstracts & focus on salient lease clauses.

Preliminary Market Research

Operations, Finance and Internal input.  Future planning.

Review of key

financial clauses:

 

Base Rent

Operating Costs

Signage & Marketing Costs

Return of Deposits

Common Area Calculations

Other Costs

Review of key

functional clauses:

 

Renewal Term & Extensions

Guarantees

Termination Provisions

Assignment / Transfer Provisions, Signage, Recoveries &

Maintenance Issues

Other

Most non-experts tend to ignore these but we can prove to you how it can have a dramatic effect on the enterprise value of your company.

© 2017 Orange Group Commercial Real Estate Inc.

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