Andrew B. Zezas, SIOR
Relationship Manager,
Strategist, President
(908) 245-5999 x11
andrew.zezas@realstrat.com

15 Opportunities to Secure Greater Flexibility and Profitability by Renegotiating Your Company's Real Estate Leases

A real estate lease can be re-negotiated at any time that both landlord and tenant have an opportunity to achieve greater benefits than those that exist under the terms of an original lease. It is common for leases with many years remaining until their expiration date to be restructured through renegotiation, in order to create new value. This is true for any type of commercial real estate, including office, distribution, manufacturing, technology, assembly, data center, customer care, health care related real estate, and any other type of facility.

In most cases, leases with remaining terms of 5 years or less create potential opportunities for tenants to achieve lower rents; protection against future rent increases; reduction or increase in space; landlord paid construction dollars; more flexible lease terms, such as future growth, contraction, termination, renewal, or other rights; resolution of outstanding disputes; and more. In some cases, longer terms leases may pose opportunities for renegotiation, as well, based on external issues or otherwise.

In most cases, the quid pro quo most often sought by landlords is the extension of the length of a tenant's lease term, in addition to other benefits. Longer leases typically have a positive or accretive affect on the value of commercial property thereby, making it easier for landlords to achieve greater liquidity by virtue of refinancing, additional leverage, sale of the real estate, or otherwise.

Opportunities to renegotiate leases may exist when:

  1. The terms of your company's lease no longer support your business requirements.
  2. Your company holds surplus or obsolete space and subleasing may not be right for you
  3. Your company requires more space
  4. Your company requires a different type of space
  5. Your company is involved in M&A, and acquires or disposes of business assets, products, or service lines
  6. Market rents have declined or are declining
  7. Market rents have increased or are increasing
  8. Your building or complex has contained large or significant vacancies for an extended time period
  9. Your building or complex experiences declines in occupancy levels
  10. Other buildings in your landlord's portfolio contain large or significant vacancies
  11. Your building or complex experiences increases in occupancy levels
  12. Another company in your building or complex is growing and will require more space
  13. Your landlord plans to refinance your building
  14. Your building or complex is about to be sold
  15. Your building or complex has recently been acquired


For details associated with each of the above 15 Opportunities, click here.
Note: Reports will be available August 1, 2007.

Any time a tenant or a landlord has something that could create value for its opponent, whether that something is contained in a lease or elsewhere, an opportunity may exist to renegotiate the lease and achieve new or greater value, for one or both sides.


Andrew B. Zezas, SIOR, is Relationship Manager, Strategist, and President & CEO of Real Estate Strategies Corporation, Publisher of "Business, Profits and Strategy", a monthly online publication read by thousands of business, financial, and real estate executives nationally, and, is the author of two new real estate books, The CFO's Guide to Understanding Corporate Real Estate Transactions and The CFO's Guide to Hiring the "Right" Real Estate Service Provider, both of which will be available shortly at www.thecfosguide.com.

Mr. Zezas is well-known for his ease and informative style of public speaking, and has given talks, presentations, and has lead educational programs for business, professional, government, and trade associations, including the Building Owners and Managers Association, American Management Association, the U.S. Postal Service, RealComm, Society of Industrial and Office Realtors (SIOR), and others. Andrew is National Chairman of the SIOR Tenant Representation Specialty Practice Board, and is a licensed real estate instructor in Texas and Indiana. He can be reached at 908 245 5999 or via email.

Real Estate Strategies Corporation, located in Kenilworth, New Jersey, and serving clients throughout the country, helps companies create and execute Business DRIVEN Real Estate Solutions...and Opportunities, faster and with less risk. Visit www.realstrat.com.

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