Lease negotiations are not conducted on a level playing field. Landlords and their agents are in the business of negotiating lease transactions on a daily basis, whereas Tenants negotiate a lease transaction every four years on average. This puts Tenants at an immediate disadvantage.

Community First Commercial Real Estate levels the playing field in lease renewal and negotiations, whether it’s a “simple” renewal, extension, expansion, or contraction. Armed with real-time market information, recent comparable transactions, Landlord motivations, and years of negotiation experience, we help our clients negotiate the most favorable economic lease transaction.

Strategy

The first step of a lease renewal, extension, expansion, or contraction is to uncover leverage opportunities. This includes:

• Determining clients objectives, both financial and non-financial
• Evaluating the market through comps, recent proposals, and market and building activity
• Uncovering credible relocation alternatives to maximize Tenant leverage
• Outlining a comprehensive strategic approach

Negotiations

The unrepresented Tenant often achieves some concessions from their Landlord in renewal or other negotiations. That said, Tenants often do not come close to approaching their Landlord's bottom line. Landlords perceive the existing Tenant as a bird in hand, and typically do not pursue existing Tenants to the extent they court prospective Tenants to the building or project, and thus, existing Tenants usually leave money on the table. In the negotiation phase, Community First Commercial Real Estate:

• Solicits proposals from viable relocation alternatives
• Creates an exit strategy by listing/ marketing the current space for sublease if significant term remains on the lease
• Leverages recent comps, proposals, and market information to create leverage
• Puts the Landlord at a clear risk of losing their existing Tenant if reasonable terms cannot be met
• Commences negotiations with Landlord
• Weighs existing location terms and conditions against relocation alternatives on a cash flow basis

Transaction Completion

Once the terms and conditions of the lease renewal, extension, expansion, or contraction are satisfactory to the Tenant, Community First Commercial Real Estate:

• Guides the Tenant through the negotiation of the lease document, amendment, etc.
• Prepares comments to the lease document, amendment, etc.
• Constructs a summary of transaction terms from start to finish, including cost savings achieved
• Develops an abstract of the transaction including key dates, terms, etc. for client reference