Lease Renewal Negotiations
One of our favorite stories is a renewal deal that we did recently where the landlord was being very difficult. A dentist had been practicing in the same building for twenty years. He paid his rent on time. He was a really nice guy. The perfect tenant. The landlord refused to reset his base year and he was only going to cut his rent by about seventy five cents, which was still well above market. He felt like this doctor had no posture and was not going to move and would not do anything. And, we moved him out. That landlord came back to us later after we had decided to move and his tune had changed, but the time to get real was the time when we were talking originally. That doctor’s rent over the next ten years is significantly less and he also got a large tenant improvement package in his new space. The value between the deal that we was going to have in his original building versus the deal he got at his new building was about $152,000 different!