Lease Renewal

BestMed Inc. was faced with an approaching lease expiration.  Prior to BestMed’s relationship with Rare Space Inc., their existing landlord had proposed a 5 year lease renewal for their current space with no increase on the current rental rate and no other landlord concessions or improvements.

Rare Space was retained by BestMed to assist in the search and acquisition of new space, while simultaneously attempting to improve the proposal from their existing landlord.  Rare Space utilized the following proven renewal process:

STEP 1:  Review market availabilities for client’s requirements and narrow list to 5 alternatives
STEP 2:  Coordinate and conduct tours of the 5 prospect properties and narrow list to 2 or 3
STEP 3:  Solicit proposals from top 2 prospect properties
STEP 4:  Review financial comparison of all proposals (including existing landlord’s proposal)
STEP 5:  Draft, approve and send counterproposals to all properties
STEP 6:  Negotiate with existing landlord using leverage from the 2 prospect properties
STEP 7:  Agree to economic and business points; execute lease document

This process resulted in BestMed’s existing landlord offering 10,800 SF of new space, built to BestMed’s exact specification for a significantly lower effective lease rate.  See the table below for a side-by-side comparison.

CONCLUSION:  By utilizing Rare Space’s services, BestMed was able to reduce its occupancy costs by over $100,000 and dramatically improve its space allocation and design.  This has significantly benefited BestMed’s financial bottom line and operational efficiencies.