Lease Restructure & Extension: Orthopedics Group
An Orthopedics Group leveraged Crown Tenant Advisors’ services for a Lease Restructure & Extension which led to a total benefit of over $114,000.
- Established multi-facility Orthopedics group practice located in a medical office building in a soft submarket.
- The practice had been a tenant in the building for over twenty years.
- Identify whether relocating within the submarket or renegotiating the existing lease and updating the current space would be the best course of action for the practice.
- Mitigate out-of-pocket expenses for the practice.
- Toured available options in the submarket to narrow down the prospective properties and leverage the existing market.
- Engaged the existing ownership with proposal to extend the lease under improved economic terms.
- Negotiated several scenarios for the future of the practice.
- Used leverage created by considering alternative locations to receive an aggressive new Rental Rate, a Tenant Improvement Allowance and Free Rent in the beginning of the new lease term.
- Aligned the goals and future plans of the practice with their real estate to create a competitive advantage.
- Reduction of over $4.65/SF off their current Rental Rate over the term. Equated to a total savings of over $62,000.
- 5 months of Free Rent to be used at the beginning of the new lease term equaling $20,317.
- $32,000 of Tenant Improvement Allowance to be used by the group to update the current space.
- Avoided future expenses by locking into a Rental Rate determined by a Tenant’s real estate market.