Renewal Solutions

TMC has a long and successful history of creating great lease renewal solutions for clients. In challenging economic times corporations increase the likelihood of lease renewals and decrease the need for new locations or relocations. The Clorox Company, CheckFree, and Pacific Telesis are examples of companies that we’ve implemented lease renewal programs for. The economic advantage of using TMC as an extension of your real estate department for renewals is absolutely quantifiable. We’ll show you how and why.

Our current economic crisis is impacting jobs, and therefore office space needs. It also means cost analysis and curtailment are necessary. Expenditures of capital are more scrutinized. Renewals and renegotiation of leases are becoming more common.

We find that when renewing leases there are economic pitfalls that companies should be aware of. First, most big brokerages do not disclose their commission amount to their client. This is concerning. And all corporate real estate departments should have a magnifying glass on this. Many brokers will leverage landlords for full commissions in renewals. This effort to create a windfall profit for a renewal is in direct conflict with a tenant’s best interests. In many cases corporate real estate managers will try to avoid those problems by approaching the landlord directly for a renewal. Corporate real estate managers are often more qualified at negotiating directly. But there is a downside. In most cases by going directly to a landlord, the corporate real estate manager is losing a measure of leverage. As any landlord that deals direct with a tenant knows that there’s a high probability that tenant will be renewing. TMC is expert in finding and negotiating competitive deals, for relocation or leverage.

We offer effective ways to avoid these pitfalls, while preserving the very critical Landlord-Tenant relationship. And we offer key additional services that big brokerages can’t offer because of their excessive overheads. Specifically we offer the following 5-Point Renewal Solution:

  1. Lower than renewal market commissions. TMC will work for you at a rate that is not only lower than market commissions for new leases. We will work for you at a rate that’s lower than renewal commission rates. Let us show you how this lowers your lease rate. It will be a better economic alternative.
  2. Successfully create leverage with the current location. We will create leverage by getting market proposals that will cause the current landlord to agree to the most competitive terms and conditions possible.
  3. Complete a lease audit at no cost to our client.  Since the 1980’s, TMC has been renowned in the industry for effective lease audits. We work more professionally than and as successfully as contingency auditors. Completing a lease audit during renewal negotiations is very effective.
  4. Our service includes a best in class Sustainability Study for our clients at no cost.  TMC has been a leader in promoting sustainability studies when relocating or renewing. We provide a comprehensive analysis of the site with a LEED AP.
  5. MAI Appraisal. As part of our work, TMC will hire an MAI Appraiser in the market to generate exact comparable leases for comparable spaces in the building and in the area.

Each of these points is an economic advantage for our clients. Whether companies complete their own renewals or work with an outside broker, our solutions present a compelling bottom line improvement for them. It’s quantifiable and we can prove it. Most importantly we have over 60 years of combined site selection and lease negotiation experience. That experience is worldwide, and it will do you a world of good. Let’s talk about this.