Why shouldn’t your company exercise its renewal option? The answer to this question is simple – because, in many cases, depending on market conditions, better deal terms may be available if you strike a new deal with your landlord.

Unfortunately, renewals are often looked at as matter of fact, standard modus operandi, easy to deal with and move on. There are common themes behind the rationale used to justify exercising renewal options. Many times, the person responsible for real estate is too busy and doesn’t have the time to deal with the issue and properly focus on the renewal opportunity. Money is undoubtedly left on the table. Other times, the same individual will have no intention or interest in moving. By default, they exercise their renewal instead of opening up negotiations with the landlord. Money is undoubtedly left on the table. Worse yet, the individual will be hesitant due to concerns related to legal and real estate fees or even landlord relationships. Ultimately, they exercise the renewal option because they believe it will be, in the short term, a less expensive proposition. Again, money is undoubtedly left on the table.

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Lease Restructuring - Taking Advantage of the Recession
02/17/2010

What can your company do to reduce its expenses during these trying economic times? If your company leases commercial space (office, industrial or retail), now is a great time to focus on lease restructuring. From a commercial tenant’s perspective, restructuring a lease should be an advantageous exercise that happens during high and low points of economic cycles. During economic expansion, lease restructuring, such as space expansion, can accommodate increased business activity and a growing workforce. When times are good, everyone’s happy. However, during economic recession, lease restructuring should focus on reducing occupancy costs today and into the future. Recessionary cycles often present tenants with an opportunity to leverage soft real estate market conditions by renegotiating economic terms and modifying undesirable legal rights. Savings derived from restructuring a lease can be deployed elsewhere within the organization to offset other costs, increase the bottom line and ultimately help the organization ride out a difficult business environment.
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Sale/leasebacks: a compelling capital source for corporations
05/01/2008

In the wake of the home mortgage crisis, the capital markets have been tightening up, even for much less risky corporate borrowers. As corporations pursue sources of capital in today’s financial environment, sale/leaseback transactions offer some meaningful advantages. A “sale/leaseback” is a transaction structure that involves a company selling a real estate asset to an investor in consideration of “leasing back” the facility for a period of time.
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Mitigating Conflicts in Traditional Real Estate Brokerage
09/01/2004

How Fee-for-Service Approaches Can Level the Playing Field. The traditional real estate brokerage compensation model was specifically established to maximize property owner profits. What kind of incentives does that arrangement give to your tenant representative or buyer broker? How does it effect their advocacy for your objectives? How does it impact your access to their internal resources? Other compensation structures can solve this problem.

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Tomorrow's Bank Branch Today
08/01/2004

Design and locational strategies to help branches maximize profitability. No one can dispute the importance of a good location in helping to shape a branch bank's long-term success. But more and more, the design of the branch itself is looked upon as a key determinant of profitability.

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Exit Strategies: How Do I Get Out of My Lease?
09/01/2003

Evaluation of the business strategies and legal rights to exit an undesirable lease. Corporate tenants ponder how nice it would be to be able to exit their leases. When should you transact a Lease Buyout? How can you avoid them in the future?

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A Closer Look: Unearthing Shareholder Value from Brownfields
12/01/2002

Many corporations have brownfield properties burdening their financial metrics and depleting their shareholder’s equity in the form of liability reserves. At its core, brownfield redevelopment is truly a real estate and financial challenge. Corporate leaders need to take a closer look at ways to create value by disposing of or redeveloping brownfields, while carefully managing the associated risks and costs.

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M&A: Real Estate Value in the Merger & Acquisition Adventure
08/01/2002

Merger and Acquisition results can improve when corporate real estate professionals are involved in the planning, due diligence and execution processes. These professionals can align the real estate strategy with the overall business plan, manage the impact of real estate on operational efficiency and optimize the financial results.

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Brownfields: Stemming the Tide with Redevelopment
06/01/2000

Urban Municipalities need to offer greenfield substitutes. How can core cities turn back the tide of urban sprawl when much of their vacant properties are environmentally contaminated? This article reviews a case study and suggests next steps.

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Logistics: Incentives in Site
07/01/1998

A government incentives packages can be a tie breaker when you're weighing the attributes of competitive distribution site.

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Site Selection: Can One Site Pack Enough Customer Service Punch?
05/01/1998

You could do a lot from one distribution site, but finding that location requires multiple considerations, both quantitative and emotional.

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