Provation

STRATEGY—CREATING LEVERAGE

• Team credibility – the landlord and/or its agents should know of, and have dealt with team (fear of losing tenant must exist) • Understand everything about the current building and landlord • Utilize the market correctly – more expensive buildings will not bring fnancial pressure. Better terms at lower square footages, with great transactional fexibility will! • Relocations drive square footage efficiency; wield that fact effectively • Potentially insurmountable or persistent problems are very useful in negotiations (past facility problems, HVAC, security, cleaning, etc.) • Financial engineering – using the stay vs. go analysis, mutually agreed upon move assumptions will be an inescapable persuasion

OVERALL STRATEGY

CRAFTING FLEXIBILITY RIGHTS TO EXPAND • Formal time intervals

RIGHTS TO CONTRACT • At key intervals • Short notices • With minimal or no cost • Pre-identify spaces to pull back

RIGHTS TO RENEW • Multiple options • With caps on pricing “up to” number of years at tenant’s notice

RIGHTS TO TERMINATE • At key intervals • At low or no cost • Short notice periods • Conditioned upon • Lost contract • No reason at all

• ROFO • ROFR • Upon renewal • Pre-commencement

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