Points to Negotiate as Occupier Leverage Increases

Occupiers around the world are asking: how should we modify our real estate strategy for the months ahead? What is our plan for today and how does it change as vacancy increases and landlords become more willing to negotiate?

Our answer is: “that depends.” Whether you are renegotiating an existing lease, looking for new space or considering subleasing space, time is on your side. We recommend discussing these points of negotiation with your attorney and local Cresa advisor.

In every instance, we work to achieve the following for our clients:

Reduce Cost
  • Rental Rate: Leverage market conditions for a more favorable rent structure
  • Base Rent Escalation: Reduce the rate of escalation to lower your fixed costs
  • Rent Abatement: Delay rent to start, offsetting costs
  • Tenant Improvement Allowances: Reduce exposure by reducing capital expenses
  • Security Deposits: Use your cash to support your business
  • Base Year: Minimize expenses over the long term
  • Audit Rights: Landlord mistakes are unintentional, but inevitable
  • Repair & Maintenance: Keep the landlord accountable
  • Operating Expenses: Ensure you get what you pay for
Maximize Flexibility
  • Length of Lease: Is shorter really better?
  • Renewal Options: Renew all or part of your space with less notice
  • Termination Rights: Only you should decide how long your space works for you
Mitigate Risk
  • Holdover: Planning for the unexpected
  • Subleasing & Recapture Rights: Use your space your way
  • Landlord Default: Protect yourself from over-leveraged landlords
  • Abandonment: Reserve the right to work where you want, when you want
  • Notice Provisions: Secure communication timeframes that meet your needs
  • Force Majeure: Rent protection from the unknown (e.g. pandemics)

Download your copy of Points to Negotiate as Occupier Leverage Increases.

July 9, 2020

Cresa Cares Donates $100,000 to COVID-19 Relief Programs

In light of the significant impact that the COVID-19 pandemic has had on so many across the world, Cresa Cares has donated $100,000 to relief efforts. We feel fortunate to be able to assist the following organizations in continuing the amazing work they are doing.
July 7, 2020

Rethinking Workplace Strategy, Especially in Challenging Times

Perhaps now more than ever, there is an opportunity for businesses to approach their real estate differently. Now is a time to think beyond space, to plan for and implement a workplace strategy to enable greater office flexibility while optimizing workforce efficiencies.
July 6, 2020

Landlord vs Tenant Expectations

With forecasts of a continued recession, coupled with an active sublease market as companies shed unwanted space,Tenants are expecting that when they go to lease office space, they are going to get a better deal than they would have in February. Yet, Landlords have a sunny outlook on the commercial real estate market, and are offering little in the way of concessions. This begs the question: How can Landlord and Tenant expectations be so different?