Tenant Case Study | Gingold and Company
The Brief
A small business with a long operating history in an older Class A office tower was quickly approaching a lease expiration in a building that had recently sold to new investors. A significant property tax increase passed through to the Tenant due to the sale, disruptive renovations, and the new ownership’s need to drive rents and achieve projected returns made a relocation seem inevitable. Or was it? Gingold and Company engaged rsfLA to evaluate options and generate an “apples to apples” comparison so they could make an informed decision.
Strategy & Results
rsfLA commenced renewal negotiations with the new Landlord while simultaneously conducting a site search for an alternative location. A legitimate alternative was found, and negotiations also undertaken. Through a dual track negotiation with competing Landlords rsfLA was able to create leverage with the existing Landlord where there was initially little.
As a small business very conscious of costs, there could be no unanticipated expenses when comparing both alternatives. rsfLA generated a detailed comparative financial analysis, that included the ancillary costs, like the move expense, related to a relocation. Coupled with more subjective evaluations, including employee commute times, Gingold & Company was able to make a truly informed decision regarding their office space.
As an intermediary that spoke the Landlords’ language, rsfLA was able to secure concessions in a renewal that met the existing Landlord’s underwriting criteria, at Lease terms that enabled Gingold and Company’s small business to continue to thrive.
