National Association, 64,000 RSF, Office Rental Rate Renegotiation
The client's lease required the rent in the last 4 years of a 15-year lease to go to 90% of market and the landlord's starting offer was 40% over the then-escalated rent.
The renegotiation clause had an arbitration provision if the parties could not come to an agreement on rent. ProTen negotiated the rent until the arbitration provision was to be implemented and gave a best and final offer, that if not accepted, the client would proceed to arbitration.
The landlord, a public pension fund, wanting to avoid arbitration, agreed to a rent reduction of 20% in a rising rental market. This reduction saved the client $2,250,000 over the remaining 4 years. The consulting fee charged was $14,000.
"We appreciated the expertise that Kurt and Renee brought to the table. Their ability to save us money in that market and in our situation was truly remarkable." -Client testimonial
International Law Firm, 74,000 RSF, Lease Renewal from Background
This client's largest client was their landlord at the time the original 25-year lease was signed with little negotiation. Three years into the lease the client felt it was not getting the benefit from their above-market deal.
ProTen recommended we consult from behind the scenes in order for the client to continue their personal relationship with the landlord. We provided our client with both market data and structured delivery of key points.
The landlord agreed to reduce the term by 5 years, reduce the rent by an average of $10/RSF/year over the remaining balance of the new term, give $5/RSF remodeling allowance, and remove their right to cancel the lease. This renegotiation saved the client $12,580,000 over the remaining 17 years. The consulting fee charged was $24,000.
"We first asked Renee for assistance since our landlord was a long-standing friend and client of ours. We found Renee's assistance from behind the scenes as a consultant to be invaluable in getting the best possible outcome for us while maintaining our personal relationship with a valued client." -Client testimonial