Lease Restructure: BP, DMD
Summary
Crown Tenant Advisors helped restructure client’s lease, resulting in a total benefit of over $330,000.
Challenge
- Assist existing dental practice by reducing real estate costs.
- Examine situation in current building and identify cost saving opportunities.
- Survey the market for potential buildings where practice could relocate.
Solution
- Provided a lease abstract comparing current situation to market.
- Provided additional potential space options for the practice.
- Leveraged the real estate market to encourage the current landlord to provide an aggressive below-market deal, as market had changed since lease inception.
- Negotiated a lease restructure that contained an aggressive Rental Rate and Free Rent in the beginning of the new lease term.
Benefits
- Rental Rate Reduction of $8.00/SF, effective 10 months prior to lease expiration. Equated to $305,000+ in cost avoidance over new 7-year lease.
- Free Rent in beginning of new term equaling $18,300.
- Avoided future expenses by locking into a Rental Rate determined by a Tenant’s real estate market.
- Allowed doctor to reinvest in dental practice with updated equipment and space.