$434,067 in Savings
Challenge: Our client’s lease was expiring soon, so they wanted to determine if they should invest significantly to dramatically improve the look of their current office or consider moving nearby so the patient base would remain intact and they could have a new, fresh office space with good visibility to market and attract additional patients. Our client did not want to cover the expense of building out a new office on top of paying to move her current operation.
Solutions: We scoured the market to find suitable alternative locations where the landlords would contribute a significant tenant improvement (T/I) allowance for a stable, long-term tenant while negotiating a renewal with the current landlord. We narrowed our search and negotiated with multiple landlords until we focused on the one property that seemed most willing to meet our requirements. After nearly six (6) months of negotiations, we secured $434,067 in savings for our client.
- Landlord’s Quoted Rate – $30.00 per square foot
- Rentable square feet – 2,720 sf
- Annual rent – $81,600
- Final Negotiated Rate – $26.50 per square foot
- Fifteen (15) year rent savings – $142,800
- Negotiated ten (10) months of abated rent – $60,067 in savings
- Secured $85.00/sf in T/I allowance – $231,200 in savings