A client I was working with had identified an office suite that was perfect for the relocation of his business. The building was for sale, but with one big problem — there was a tenant in place.
After reading the lease and the lease terms, I learned three valuable facts:
1) the tenants lease was to expire just a few weeks after we needed the space,
2) there was not a renewal option available to the tenant
3) the tenant was personally guaranteed on the lease with a security deposit.
There was no time to waste
we had to engineer a solution to accommodate all the parties’ goals…
We had to engineer a solution to accommodate all the parties’ goals, and properly convey the benefits to each party or the opportunity would be missed for my client. In other words, there was no time to waste in finding the existing tenant a new office space that met his budgetary and zoning requirements.
Over the course of 3 weeks we successfully:
– Analyzed the current on and off market options.
– Identified available space for lease with medical zoning.
– Previewed the available options and took pictures for expediency.
– Chose an option, negotiated on that space, drafted a lease.
– Signed the lease and scheduled the movers.
– Relocated everyone to each’s satisfaction.
While this particular example turned out to be a success, it really is more of an example in what not to do as a tenant. There are forces that can come into effect out of left field, and accepting that fact should encourage businesses to leave plenty of time before a lease expires. This particular case involved two sales of office suites which gave little warning to those running the businesses occupying them. Neither party in this situation necessarily did anything wrong, however, they were affected by a situation beyond their control. We worked hard, but really we were lucky the solutions existed in the marketplace.
When does you lease expire
Avoid unnecessary stress – maintain negotiating leverage
I do recommend clients begin the process six months before lease expiration to avoid unnecessary stress and to maintain negotiating leverage.