An administrative office in the healthcare industry came to Justin Rayburn, tenant representative, to renew and restructure an existing lease agreement.
The Situation
The client was in a long-term lease obligation at a rental rate that was 15% above current market rents in their building and in need of interior renovations completed within the premises.
The Challenges
The client didn’t have the time or in-depth expertise needed to go head-to-head with their landlord—that’s where we came in. To successfully restructure the lease, Rayburn knew he would have to start negotiating early. Without sufficient lead time, they’d lose any leveraging power they had. To determine the new leasing agreements, Rayburn performed a property evaluation, market analysis, and financial analysis. After doing so, he sought a lower rental rate and much-needed tenant improvements.
The Result
Rayburn restructured the lease agreement 13 months prior to the natural lease expiration. The client received over $175,000 in economic value through rent savings and other economic concessions and tenant improvements were completed within the premises prior to the initially scheduled lease expiration.
The Stat
Rayburn acted as the tenant representative for the lease renewal and restructure. If you need similar services and are looking for a trusted, experienced tenant representative to restructure an existing long-term lease in Colorado (or anywhere in the United States), contact us at Fountainhead Commercial today.
