The Devil is in the Details
In most companies, occupancy costs are the 2nd most expensive item on their books, right after payroll. For this reason, attention to detail in every commercial real estate transaction is essential and can potentially save big dollars. At the same time, one small mistake can produce expensive consequences. We scrutinize every detail of every provision on your behalf to be sure you are not leaving money on the table, or exposing yourself to unnecessary risks.
CASE STUDY: At renewal time, we helped one tenant save $205,000 by adjusting a small lease term.
A certain business leased 78,500 square feet of space in a pristine business park. Within their lease, they had a provision that made them responsible for replacement of parking lots, roofs, and HVAC equipment. The Landlord told them that this “was standard lease language” and could not be altered. During a renewal and with the help of their tenant rep, this language was deleted and replaced with language that obligated them only to repair such items. After they renewed, the landlord undertook a major renovation to the business park, which included overlaying the parking lots, replacing many roofs and replacing many of the old HVAC units. The other tenants within the park who had “blindly” agreed to the “standard lease language” saw a 36% increase in their CAM reimbursement charges that year, while this company saved $205,000 because of a small change in the lease language.
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