Perhaps one of the biggest mistakes a tenant can make is to believe it does not require the services of a real estate broker to negotiate a lease renewal. It is our experience that we can often save a tenant just as much money in renewal negotiations as we can in new lease transactions. The key is to provide the tenant/client with a buffer between itself and the landlord.
Oftentimes a tenant has developed a relationship with the landlord over the years of its tenancy and is hesitant to press as aggressively as it should in negotiating renewal terms. Landlords also know that most tenants prefer not to move. Consequently their terms for renewal are rarely, if ever, as aggressive as they would be for a new tenant.
Price Edwards & Company, has been able to save numerous tenants thousands of dollars by using our experience, knowledge of the market and ability to ascertain the landlord’s breakpoint. That is the point at which the landlord will drop the proposed rental rate and expand concessions to avoid having the tenant relocate to another building which results in the landlord having to absorb an extended period of no rent and high tenant finish expenditures to attract a replacement tenant. Having a broker Identify realistic alternative locations also enhances a tenant’s bargaining position and causes the landlord to negotiate in good faith.
In the past few years, Price Edwards & Company’s Craig Tucker has successfully negotiated markedly better renewal terms for Canaan Energy, Cheyenne Petroleum, McCaskill Financial Group, Grant Thornton, AXA, Hilb Rogal & Hobbs (now Willis), Accord Human Resources and Harrington Benefits in both Oklahoma City and Tulsa.
Having a professional on your side of the table to level the playing field is always the best decision and all fees are typically paid be the landlord.
