Another Successful Lease Renewal Mandate completed by Advent Commercial Real Estate

Sep 10, 2010 by

The dreaded lease renewal.  Landlords with all the information get to propose to you the tenant, in some instances a captive Tenant as a result of specialized and hard to move equipment, a rental rate for your renewal.  Without some exhaustive work it is difficult for the tenant to determine if the proposed rental rate is fair or reasonable.  Should I move?  What are my moving costs relative to my increase in rent?  All questions that need to be explored in detail.  The solution is to hire a commercial real estate associate who specializes in the Calgary Industrial market to assist with your lease renewal.  This way you can have someone on your side helping with the information gathering to determine.  We recently completed a renewal for a user that had no intention of moving but was subject to a proposed renewal rate that was $1.50 over market.  The total savings over the length of the renewal were just under$90,000 just for taking the time to hire an agent and allow them to negotiate directly with the landlord.

In this particular case the tenant had a significant amount of production equipment to move and as such the landlord targeted them as a “captive tenant” and chose to inflate the renewal asking rate.  We were able to convince the landlord there were suitable alternatives that were offering rental rates that would overcome the cost of moving.  It was definitely a bit of a poker game but armed with sufficient information the tenant was prepared to play.  Without the confidence of the information the game poker game may have turned out different.

For help on how you too could benefit from our Lease Renewal Negotiation Services.