Over the past six months, much of the commercial real estate activity across markets has been comprised of lease renewals, many with restructured terms to capitalise on the tenant’s favourable position in the marketplace. With mounting optimism of an economic recovery on the horizon, this trend is increasing as scores of corporate space users are renewing existing leases to take advantage of rates before the pendulum swings back in the landlord’s favour. Although a renewal and restructure could potentially deliver significant occupancy cost savings, only those carefully considered and effectively negotiated offer tenants the most significant long‐term benefits. This paper provides guidelines for corporate tenants to determine whether a lease restructure is feasible and offers strategies for negotiating the best possible terms.
Journal of Corporate Real Estate – Emerald Publishing
Published: Jul 1, 2004
Keywords: Lease; Restructure; Renewal; Real estate strategy; Tenant; Negotiate