Lease Extension and Expansion

How a tenant-only advisor helped protect occupier interests and obtain a true market deal
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Client
  • International Chemical Company
Space
  • 14,218 sq. ft.
Industry
  • Industrial
Locations
  • New York
Services Provided
  • Transaction Management

The Challenge

With two and half years left on their lease, an established international chemical company was running out of space. They initially approached the landlord directly about expansion and agreed to what they were told was a “market” deal that included 1 month of free rent, 3% annual escalations and electricity charges of $3.25 per square foot and a promise of a build out of new space that was light on details. They didn’t know what was market and took the landlord's word for it. A lease was drafted by the landlord on these agreed terms.

Results

After an initial introductory meeting to learn about the current state of the market the tenant realized their deal was in fact, not market. They hired representation to protect their interests and get a true “market” deal. The advisor worked with the client to achieve:

  • A more favorable lease that included lower base rent, lower annual expenses and lower electricity costs through sub-metering vs. fixed dollar amount per square foot.
  • A detailed work letter prior to build out, including above standard materials at landlord's expense and reduced sundry charges.
  • Business continuity with new office space to accommodate tenant growth.
Cresa excellently negotiated on our behalf to make the vision become reality. Our advisor spared us a lot of frustration and confusion by clearly explaining where we stood, how they planned to negotiate obstacles we encountered, and expressing our requests to the landlord. Cresa's ability to coordinate involved parties and get them to come to the same table to move the process forward together is superb. They have sincerely been a pleasure to work with, and I feel fortunate to have had the opportunity to work with them.

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