Success Stories

Tenant Representation:

Overmarket
Lease Assessment

Abstract:

A lower Westchester office tenant believed they were in an overmarket lease, and needed to determine whether to exercise their cancelation option and sign a new lease, or to continue the next two years in their current location. The client contracted Admiral both locate a suitable alternative and to perform the analysis comparing the existing lease to the new one. Admiral’s comparison showed that the new location would provide the client with both significant savings and more stability through a longer-term lease.

CHALLENGES:

  • The client had difficulty finding appropriate available spaces in the market.
  • They also needed assistance negotiating business terms for a new lease, and working with the existing landlord to renegotiate and extend the existing lease.
  • The client needed help comparing the short- and long-term costs of the two leases, taking into account rent, reimbursements, rent concessions, cancelation fees, moving costs, build-out costs and tenant workletter.

Solution:

  • The tenant started their discovery process with an over-market lease that only gave them two more years at their current building. After working with Admiral, the tenant had a new 10-year lease at a lower rental rate and for a smaller square footage, saving them over $35,000 per year.
  • Rent per square foot was not the deciding factor in this case, as the tenant’s existing space was 5,600 square feet, but the 4,000 square foot alternative space that Admiral found still accommodated their personnel and equipment.
  • While renegotiating the existing lease might have been an option, the existing landlord was unable to reduce the size of their space, and would not reduce the rent sufficiently to make the two deals equivalent.

Client BENEFITS:

  • The tenant started their discovery process with an over-market lease that only gave them two more years at their current building. After working with Admiral, the tenant had a new 10-year lease at a lower rental rate and for a smaller square footage, saving them over $35,000 per year.
  • Rent per square foot was not the deciding factor in this case, as the tenant’s existing space was 5,600 square feet, but the 4,000 square foot alternative space that Admiral found still accommodated their personnel and equipment.
  • While renegotiating the existing lease might have been an option, the existing landlord was unable to reduce the size of their space, and would not reduce the rent sufficiently to make the two deals equivalent.