Office Lease Renewals
Office lease renewals account for roughly 50% of our business engagements. Many tenants mistakenly believe they can negotiate a great lease renewal with their existing landlords without any representation because they are already engaged in business with them. However, this is often a mistake because the majority of business owners in New York City understand the concepts of base rent and free rent, but are lacking knowledge in regards to the more complex areas such as real estate tax base years, rent escalations, upcoming real estate laws and regulations, construction costs, and market concessions which tenants are entitled to. If not properly negotiated, these "fine print" areas can end up costing tens if not hundreds of thousands of dollars through your lease term, and costing your business heavily. It is important to have a skilled representative negotiating on your behalf to maximize the value of your lease term.
Q: I have a few years remaining on my lease, why should I renew now?
A: Leverage. By negotiating a renewal a few years before your lease expiration, you hold the cards and have the leverage. You are not pressured into an unsavory deal due to time constraints.
Q: Why use a tenant representative?
A: Most landlords hire an agent to represent their interests. It helps level the playing field if you have someone representing yours as well. If the landlords day-to-day business is real estate and they're hiring a representative, shouldn't you?
Q: How can a tenant representative help me?
A: Tenants renewing their leases are entitled to various concessions from the landlord. According to a market research study conducted in 2013, 85% of tenants surveyed paid well above market rates on their renewals. A tenant rep will ensure that you do not miss out on any of the benefits your renewal grants you.
Q: What are tenants entitled to on a renewal?
A: Most tenants think that it is all about the price and do not realize that they are owed free rent, space modifications, and below market rents on a renewal. If a tenant leaves, the Landlord will have to pay out of pocket costs in the interim until there is a new tenant. The typical landlord's solution is to rely on a tenant's unfamiliarity with renewal laws, and try to capitalize on your renewal without giving you the concessions you deserve. As your representative, our job is to ensure that you get the best possible deal by exercising the rights afforded to you as a tenant.