Landlords typically engage in renewal discussions with tenants who posture a veiled threat of relocation. It is well- established that the inherent possibility of relocation provides the leverage necessary for a tenant to obtain the best possible terms for a renewal of the lease. This has been the common practice and prevailing wisdom of industry professionals who represent tenants for lease renewals. But is this really the wisest course and the proper posture for a renewal tenant’s negotiating position? In some cases it may be, but in many cases it is not. In fact, what many tenants and their brokers fail to understand about renewal negotiations is that such a posture creates underlying stresses and pressures, which very often result in less desirable lease terms offered to the tenant than would have been offered under less pressured circumstances. Unlike a new lease, a renewal must be handled with considerable sensitivity and a keen awareness to details often overlooked or dismissed in an initial lease signing.

Lease Analysis
Leases must always be examined in relation to a given set of circumstances. Therefore, we first establish a framework for analysis based on thorough consultation with our client. Then, we analyze the lease by deconstructing its provisions to reveal deficiencies and opportunities relative to the objectives of a potential transaction. Further analysis will measure comparisons, across multiple criteria of market conditions, factoring base rent structures, escalations and other fixed and variable tenant expense items. A complete and thorough analysis of the existing and/or proposed lease is essential in understanding and creating a viable negotiating platform. Once a negotiating platform is firmly established through analysis of the lease and the client’s objectives, a winning strategy can be created to achieve these objectives.

Lease Negotiation
We succeed in renewal and sublease negotiations because our approach is different. We understand that lease negotiations are fundamentally changed when the parties are known to each other, and when the perspective of an existing tenancy is present. For this reason, in renewal negotiations we apply a highly-refined strategy to negotiate on a platform of mutual understanding and respect for the parties’ both competing and complimentary interests. We have found that landlords overwhelmingly favor this approach to negotiations for renewal leases -- and this is part of the secret to our success. Simply put, when landlords and their agents are positively impacted in a tenant’s approach to renewal of the lease, negotiations become more direct and better terms are much more likely to be realized. However, as negotiations can be as fluid and unpredictable as the personalities and entities involved, it is always necessary to maintain a position of strength at all times, which is our highest priority.

Subleases
If your company is in a sublease as a tenant, you already know that the building’s landlord has no loyalty and little obligation to your needs. What you may not know is that the landlord would likely prefer to be in a direct lease with your company as its direct tenant. It is just as likely that the company from whom you are subleasing space would prefer to be relieved of its obligation to serve as your landlord. This transition falls somewhere between the negotiation for a new lease and the renewal of an existing lease. There are many possibilities that would result in a positive transition for all parties. Our experts will make it work for you.