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.