COMMERCIAL LEASE SERVICES
Due to the current severe economic crisis and a potentially long-term recession, Commercial Lease Services (CLS) has been formulated to assist commercial tenants in their long-term leasing strategies. Core areas of emphasis include, but are not limited to:
* Lease relief and rent reductions
* Lease restructuring
* Lease renegotiations
* Lease renewals and terminations
* Feasibility studies and strategies for lease relocations
Overview
Given the current commercial lease economic conditions, there have been major declines in current market rent of commercial space, and vacancies, store closings and tenant bankruptcies are rising at an unprecedented rate. CLS’ business model is to provide services for commercial tenants who have long-term lease obligations, above market rental rates as opposed to current market rates, and/or leases coming up for renewal. With careful analysis of the tenant’s current lease situation, as compared to current market conditions, a strategy is arrived at to optimize and maximize the tenant’s inherent lease value.
Process
1. CLS reviews and evaluates with the tenant the current lease obligations against current market conditions.
2. CLS assists client in setting goal strategies on determining what plan of action is necessary concerning the current lease situation.
3. CLS then establishes general parameters of a negotiating strategy when dealing with the landlord.
4. Tenant sends letter to landlord authorizing CLS to act as its agent in the lease renegotiation process.
5. CLS negotiates with landlord to obtain a mutually satisfactory lease modification agreement, which is acceptable to the landlord.
6. Negotiated terms are sent back to the tenant for documentation by tenant’s legal department.
7. CLS follows up with tenant to see that strategy is fully implemented.
The CLS Advantage
CLS specializes in personalized attention to every detail of the lease renegotiation process. Clients deal directly with the owner of the company and its in-house staff. Unlike many national firms that farm out assignments to people who are unfamiliar with the client’s needs, CLS works directly with the client and the landlord and not through intermediaries. Many times with a more national approach to lease negotiations, there is a large gap of understanding from the local market conditions and the tenant/landlord perspective on each individual lease deal.
Edward C. Anderson, President of CLS, is a 30+ year veteran of commercial lease negotiations with a wide variety of commercial real estate endeavors from the perspective of the landlord, tenant, ownership, acquisition and disposition of properties, property management and construction viewpoints. With this background and current market knowledge, he does an exceptional job in achieving rent concession/mitigation on behalf of his clients.