From Dream to Triumph: Strategic Lease Deals That Cemented Our Client’s Success

By Your Leasing Co

Background

Our client Sarah had a single real estate agency in Brisbane targeting a particular demographic and was wanting to grow her business, by expanding into a new location with a similar profile.

Sarah’s initial vision was to expand to just one more location, with a view to adding further locations down the track.

Despite working in the real estate industry, she recognised that her specialty was residential real estate and not commercial and that our expertise was going to be helpful in order to garner better results than what she might have been able to secure negotiating the next Lease on her own.

Sarah discovered Your Leasing Co.

By luck, Sarah came across us, a team of Tenant Representatives, who specialise in all aspects of commercial Lease negotiations. Conducting these negotiations daily, equips us with the knowledge and experience to engage with Landlords as an equal, alleviating any anxiety or stress for Tenants like Sarah. The power imbalance which exists is gone. We step into the Tenant’s shoes, ensuring that business owners like Sarah achieve the best possible deal and don’t feel pressured or coerced into accepting an agreement they are not comfortable with.

In this case, Sarah happened to encounter Your Leasing Co at just the right moment.

After a phone call with Sarah, we gained a detailed understanding of her vision and Sarah’s objectives for the new Lease.

We stepped in to represent Sarah in the Lease negotiations. Two new locations were identified that could be suitable, so in order to maximise the best possible outcome for her next new location, we start negotiations on both.

Sarah was relieved to have an experienced lease negotiator on board, someone reliable to act in her best interests and negotiate on her behalf, securing an agreement that was affordable and aligned with market trends, rather than simply agreeing to the asking rent. The exciting part was that, thanks to the work of Your Leasing Co, Sarah was able to successfully secure both of the possible locations.

Your Leasing Co successfully negotiated a really favourable outcome for Sarah on both locations! Let’s recap those outcomes …

Where did we start?

Sarah’s starting position was a straightforward, what we like to call “vanilla” deal, on both of the possible locations. Collectively, the Landlords asking rents came to $311,250 with annual increases of 4%, an initial term with an option and full security coverage in the form of bank guarantees and personal guarantees from Sarah.

Where did Sarah end up?

Your Leasing Co were able to negotiate a combined total savings of $396,570.49, through a combination of rent savings and incentives across three leases, including:

• A combined rent saving of over $80,000 plus GST

• Reduced annual increases to either 3% or 3.5% per annum

• A combined saving of $4,000 in uncharged legal fees

• Rent free valued at just under $120,000 plus GST

• Combined cash incentives of $175,000 plus GST

• 50% reduction in carpark rental, saving close to $15,000

Extra wins …. more hidden treasure unlocked …

Streamlined Make Good Requirements: We negotiated minimal end of Lease obligations, only requiring patching, painting and removal of loose fixtures, significantly lowering any investment required at the end.

Flexible Lease Options: We secured two further options on each Lease, allowing for extended occupancy, to suit the business and its growth.

Reduced Bank Guarantee: Initial bank guarantees required were six months, which were negotiated down to three months, freeing up working capital for Sarah.

Waived Personal Guarantees: Personal guarantees were eliminated completely, limiting personal liability for Sarah and securing the Leases with just the bank guarantees

Demolition Clause Mitigation: We negotiated a $150,000 compensation payment if a demolition clause is invoked within the first three years.

Landlord Funded Fitout: The Landlord agreed to deliver the space as a warm shell at no cost to the Tenant, allowing for custom modifications, with reduced entry costs.

Sarah was thrilled with the savings and additional benefits that had been secured through the negotiations and felt a sense of relief for entrusting the Lease negotiation process to a professional. The expertise and market knowledge of Your Leasing Co provided her with confidence and peace of mind. She knew that the deal would be assessed rationally and commercially, and the Landlord’s leasing representative’s experience and knowledge would be matched, resulting in outcomes she couldn’t have achieved alone.

Your Leasing Co. specialises in representing commercial Tenants in their Lease negotiations. If you have any questions about negotiating the best outcome for your next Lease, you can call Kelly Cunningham for a free, no obligation conversation on 1300 356 702.