When TMC takes on tenant representation assignments, more than anything else clients demand that we get a great rate and deal for them. They nearly always say that. That happened when we did tenant representation for Payless Drug Stores, as we negotiated an under market rent for their office lease in San Leandro, CA.
The San Leandro location is where Payless runs their California operations from. The rent deal we struck was roughly 14%-33% percent lower than similar properties Payless could have leased. The range of 14-33% is larger than typical because office space on the West side of the East Bay can be diverse in quality type. This flex space property type usually leases at about 20% higher. We achieved the rate with the landlord by leveraging alternative deals that were absolutely competitive with the property we ultimately leased for Payless, but were lower priced or subleases. Uncovering the best deals in the market helped our clients negotiate a below market rent. A benefit to their bottom line.
We also negotiated for 2 absolutely necessary conditions, a termination right in the middle of the lease, and free and plentiful parking. We achieved them both.
TMC studies our transactions after their complete. We’re not new in the business. Our clients like Payless Drug Stores “pay less” rent when they use us for tenant rep assignments.
We study market rents and comparables and we get the better rates and deals our clients are looking for.