Displaying items by tag: tenant representative
Securing a lease at the right office, flex or industrial warehouse space at the right time, for the right price is challenging. And if you try to go about it alone, your commercial real estate experience can end up being more costly. When it comes to a decision as big as this, it’s best to trust and engage a professional. If you’re interested in commercial tenant representation in Denver, we’re here to help.
An administrative office in the healthcare industry came to Justin Rayburn, tenant representative, to renew and restructure an existing lease agreement.
The client was in a long-term lease obligation at a rental rate that was 15% above current market rents in their building and in need of interior renovations completed within the premises.
The client didn’t have the time or in-depth expertise needed to go head-to-head with their landlord—that’s where we came in. To successfully restructure the lease, Rayburn knew he would have to start negotiating early. Without sufficient lead time, they’d lose any leveraging power they had. To determine the new leasing agreements, Rayburn performed a property evaluation, market analysis, and financial analysis. After doing so, he sought a lower rental rate and much-needed tenant improvements.
Rayburn restructured the lease agreement 13 months prior to the natural lease expiration. The client received over $175,000 in economic value through rent savings and other economic concessions and tenant improvements were completed within the premises prior to the initially scheduled lease expiration.
Rayburnacted as the tenant representative for the lease renewal and restructure. If you need similar services and are looking for a trusted, experienced tenant representative to restructure an existing long-term lease in Colorado (or anywhere in the United States), contact us at Fountainhead Commercial today.
As a business owner, you have a lot of pressing things to worry about, not the least of which is your office or industrial lease. For most business owners, the never-ending to-do list means enlisting the help of an experienced tenant representative when the time comes to negotiate a lease. As a CCIM-designated commercial broker, Lowrey Burnett of Fountainhead Commercial, has worked with a wide variety of businesses and business owners throughout the leasing process to include attorneys, accountants, financial services, oil and gas, engineers, fitness, product distribution, product manufacturing, contractors, marketing, medical, etc. As a commercial tenant, there are certain responsibilities that fall to you. The Fountainhead Commercial team has put together this guide to help commercial tenants make the right choices throughout every stage of the leasing process.
The Denver business landscape is competitive. There’s no doubt about that. That means when it comes time to make decisions for your business that are outside of your area of expertise, you need to consult with an outsourced expert who can not only satisfy, but exceed your expectations. The commercial real estate you own or lease is no exception. We know that, as a business owner, you’re busy managing day-to-day operations and don’t have time to be well-versed in the process of selecting tenant representation services. So, we’ve put together a comprehensive guide that will help you ask the right questions of any Denver tenant rep you’re considering so you can make an educated decision.
A local crossfit gym had been in business for several years but the capacity of their facility was not accommodating their growing membership. They were referred to Lowrey Burnett, CCIM by a previous, satisfied retail tenant. Having spent their days building their business and not keeping tabs on the current commercial real estate trends, they sought expert guidance on the pros and cons of leasing versus buying a commercial retail property prior to their upcoming relocation.
While occupying a retail property with limited on-site parking, the owners of a Colorado crossfit gym realized their rapid growth had overwhelmed their small facility and was becoming a point of frustration for their existing paying membership. They needed to relocate to a larger facility that provided the necessary amenities and kept them close to their loyal members. Burnett was ready to help them analyze the lease versus purchase options and make the prudent financial decision for their business.
Initially, the client wanted to purchase a property, rather than continue leasing space. Unfortunately, continuously increasing real estate prices, higher construction costs, and limited financing options ultimately lead Burnett to recommend that purchasing was not a viable option. Burnett then focused the search on lease options. Location was a primary determining factor for this client. The retail business owners had to avoid being too close to the locations of their competitors, while also staying within a 3-mile radius of their existing clientele. The latter was essential for a successful relocation of a service-oriented business.
Last, but certainly not least, the client had a modest budget relative to the facility size and current asking rates within the urban submarket they desired.
The client engaged Burnett with two years left on their current lease, so they had plenty of time to perform a thorough search and make a sound decision for the business. After over 18 months of property searches and numerous tours, the client successfully closed on a long-term lease at a below-market rental rate in a highly-visible and easily accessible retail property. This demonstrates Burnett’s commitment to always give 100% to each client no matter how long it takes. With additional square-footage and more available parking, the new facility allowed the gym to grow further by accommodating additional members, more classes and offering additional services like day-care and physical therapy which increased top-line revenue.
Lowrey Burnett, CCIM-designated broker acted as the buyer/tenant representative for a client who successfully leased a retail space at below-market rates.
If your business is growing and your current retail property can’t keep up with your plans and dreams, contact our tenant representative at Fountainhead Commercial today.
When a Houston-based industrial client, occupying an 80,000 square-foot distribution facility, needed more space for their Colorado operations, they knew the guidance of an experienced, local tenant representative would be important. Not only would they need to sell their current industrial property, but also simultaneously identify a new warehouse in a tight market, negotiate the terms of the lease, and relocate to a new, larger facility. They engaged CCIM-designated broker, Lowrey Burnett, to help them navigate the process.
Upon outgrowing their distribution facility, the client engaged Lowrey Burnett to act as their representative for both the disposition of their current facility and the procurement of a larger lease space. In order to prevent any disruption to critical logistical operations, they needed Burnett’s expertise to seamlessly execute both transactions. Despite the challenges he faced, Burnett was prepared to navigate a complex set of circumstances under a timeline that supported the end goals of the business.
The client was operating a large logistics, transportation, and packaging business so coordinating a sale and subsequent relocation that supported the client’s ability to honor all existing contracts was paramount to the success of this transaction. Unfortunately for tenants at that time, vacancy in the client’s desired submarket was at historic lows of less than 5%. In addition, asking rental rates were on the rise and the client’s budget demanded a below-market rental rate. The client required an industrial property with ESFR sprinkler system, front park-rear loading dock, and an upgraded, energy efficient lighting system. Availability of affordable property with the necessary features posed a difficulty in the search for acceptable replacement properties, but Burnett was not deterred. He identified a Class A 200,000 square-foot industrial property in the client’s desired geographic area. The next step was to negotiate a staged ‘take-down’ of the property that included the first 100,000 square feet, followed by an additional 50,000 square-feet in five months, and the final 50,000 square-feet five months after that. These negotiations were all in advance of and contingent upon the sale of client’s current property.
The client successfully closed on the sale of their current facility, a transaction in which Burnett acted as the seller’s representative for the client, and made a smooth relocation to the new property, including each stage of the additional lease space take-down.
Lowrey Burnett, CCIM-designated tenant representative, successfully identified and negotiated the terms of a 200,000 square-foot take down, facilitating a smooth transition of operations. If you have outgrown your current space and need to renegotiate your lease terms or identify a new location for your warehouse operations, contact the tenant representative at Fountainhead Commercial today.
A publicly-traded insurance company made a management change to foster a dynamic and energetic culture in their Denver office. After years of flat or declining revenue growth and unacceptable turnover due to low employee morale, the new leadership knew that a transformation of the culture would require a multi-faceted approach.
The client, an insurance company, enlisted the help of expert tenant representative, CCIM-designated broker, Lowrey Burnett, to help relocate the Denver operations to a new facility that featured great amenities and advanced technology. The leadership team believed this move would play a key role in facilitating a positive, cultural shift. The client was committed to effectively making a major shift which included very specific requirements for their new space.
The client had tightly defined criteria for both their lease space and the commercial office property itself. This included high-quality restaurants either nearby or onsite, an exercise facility, daycare, lactation room for the working mothers, and onsite security personnel. Additionally, they wanted the property to be located near the highway system and feature floor-to-ceiling exterior windows with views of the Colorado Rocky Mountains, as well as LEED certification for energy efficiency in a Class A suburban office building. Last, but certainly not least, the cultural change forced urgency into the situation. The client wanted to complete this relocation several months prior to the lease expiration in the current space without having to pay rent for two office locations.
Burnett was up for the challenges he faced with this transaction and began a comprehensive search.
Burnett identified an office complex that perfectly aligned with the client’s criteria. He negotiated a 7-year lease with expansion options to accommodate future employee growth. Additionally, Burnett negotiated a rental abatement period so the client could avoid paying double rent. As a result of these changes, employee satisfaction and employee retention improved, and the company continues to see higher revenues, higher employee satisfaction and improved operational efficiency following the relocation of the Denver operations.
CCIM-designated tenant representative, Lowrey Burnett, identified, negotiated, and secured a 7-year lease on behalf of a client looking for highly-specific property features located within a tight geographic region. The current lease was vacated over 6 months early, but the client avoided paying double rent with the rental-abatement period Burnett negotiated into the new lease.
If employee morale and revenue are suffering as a result of your current location, contact Lowrey Burnett to find a space that satisfies the needs of your company.