Let's Talk: What to Do After Your Office Building Sells
We have previously covered what it means when your company's office space is in a building that’s under contract to sell. Now let's discuss how to proceed when your building does sell. It’s a pivotal moment—and potentially a valuable opportunity—if you’re prepared.
What should you expect from the new owner? What can you do to protect your business?
Strengthen Your Position
If you occupy a significant portion of the building or have strong credit, you may have more leverage than you think. A new owner doesn’t want to inherit unhappy tenants, especially from day one. Use this transitional window to:
- Reaffirm the terms of your lease.
- Confirm that any concessions, abatements, or improvement allowances agreed to by the previous owner will be honored.
- Express concerns about future rent increases or capital improvements.
Understand the New Owner's Strategy
Most new owners look to increase revenue. In some cases, they’ve taken on a mortgage with unfavorable terms or may face higher taxes. To justify these expenses, they may:
- Raise rents at renewal.
- Reclassify the building to a higher grade.
- Renovate shared spaces and pass those costs through to tenants.
Keep an eye on planned capital improvements and operating expense adjustments. If your lease doesn’t adequately protect you, those changes could affect your bottom line.
Watch for Service Cuts
Reducing operating costs is another common strategy. That could mean fewer services—like maintenance, trash pickup, or HVAC hours. In some cases, new landlords may shift more costs into management fees, boosting their profits without offering added value.
To stay ahead:
- Review expense estimates and reconciliations when they’re issued.
- Ask for a line-item breakdown.
- Benchmark expenses against similar properties to spot red flags.
Build a Relationship Early
Expect the new owner to request a meeting and review your estoppel certificate. This is your chance to:
- Get clarity on their plans for the building.
- Raise any issues with prior service levels.
- Start a dialogue around your future lease needs.
Remember: expressing dissatisfaction or intentions to relocate—especially if you're a key tenant—can be powerful leverage.
Seize Opportunities with the Help of a Tenant Advisor Like Cresa
Whether you’re planning to renew, restructure your lease, or explore new space options, the best move is to prepare early. With the right guidance, tenants can uncover opportunities for savings, improvements, and stronger lease terms.
At Cresa, our only clients are users of office space and there are many strategic advantages to having us as your partner in this regard:
- We are free to negotiate more aggressively on your behalf.
- We have no contractual obligations with landlords.
- We dedicate 100% of our time and resources to serve occupiers.
- We provide unbiased, objective client representation.
- We interpret market data from your perspective as the tenant, not the landlord’s perspective.
- We provide consistent cost savings because our only fiduciary responsibility is to you, the tenant.
Contact Cresa today to ensure your office space continues to meet your needs, no matter what changes come your way.
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