What is a Lease Restructure?

The idea of a lease restructure is fairly simple:

• Assume that you have 4 years remaining on your original 10-year term lease.
  
  
• Your original lease was most likely structured with an annual increase based on yesterday's lease rates.
  
  
• If you were to sign a lease today in most cases it would be lower than what you are currently paying.
  
  
• We would build leverage by placing your existing space on the market for sublease, examining less expensive options and approaching your landlord to restructure your lease.
  
  
• During this lengthy negotiating process with your landlord we would also approach several outside landlords to assume your remaining obligation.
  
  
• We would develop creative financial models that would show your landlord why it is more advantageous for them to agree to a restructure of your lease. 
  
  
  This is done by showing your landlord:
  
  
  • Tenant recapture costs
    
    
  • Marketing expenses
    
    
  • Surrounding vacancy rates
    
    
  • And ultimately the upside of a longer term with you as the tenant

I've heard it said that the best solutions are win-win-win solutions.  In a lease restructure everyone wins!

• The tenant secures a fair market rate and reduces their exposure.
  
  
• The landlord gets a longer-term commitment at a fair market rate.
  
  
• We secure another client and make a reasonable and justifiable fee.

Newmark Knight Frank specializes in tenant representation, which includes lease review and strategic planning to reduce tenant expenses.  Contact me today for our first meeting, an introductory meeting where you'll learn more about our services and just how we can help your business reduce expenses.

Regards,

Jason Tucker | Associate Director

Newmark Knight Frank, Inc.
34975 W. Twelve Mile Road | Farmington Hills, MI 48331
Phone: 248-848-4084 | Fax: 248-848-9041 | Cell: 248-431-8138
e-mail: jtucker@newmarkkf.com | Website: www.newmarkkf.com