Lease Renegotiation

Is your company stuck in a long term lease that has you paying too much in rent?

APG can help!

Commercial rents have fallen across the country. But what if you are already in a long term lease?

Many tenants think that they are stuck with the rent they are paying because they have months or years left on their lease term. When they ask their landlord for a rent reduction they are usually told something like, “You signed a lease agreeing to the rent you are now paying. Let’s talk again when your lease expires. Have a nice day!”

If you have heard those words, don’t give up! American Properties Group, Inc. specializes in obtaining a better deal for tenants, especially for those who are in a long term lease. We know how to negotiate a ‘win-win’ solution that your landlord will accept. And that solution always includes a better deal for you!

CASE STUDY

Regional Fitness Club Franchise

A regional fitness club operator was concerned by a competing national chain's announcement that it was entering his trade area. Known for its aggressive marketing methods, the national brand intended to offer free or almost free memberships to lure away members from the existing club. The only way to fight the campaign was to reduce costs and match the deal. Several years from the end of his lease term, the operator was already paying a higher-than-market rent rate, and facing a planned rent escalation. He reached out to the landlord for some relief, but was told he was bound by the terms of his lease.

The franchisee contacted American Properties Group and explained his dilemma. We reached out to the landlord, armed with facts and experience, and were able to negotiate a lease amendment that reduced the client's rent by 22%. We saved him more than $248,000 on his existing lease term and negotiated a term extension at a rate below market. The landlord paid our fee as well. Our client says we rescued his business - and helped him avoid personal bankruptcy.

CASE STUDY

28,000 sf Retail User

A small business owner was 8 years into a 10 year lease in a well established in-town shopping center. Facing a rent escalation, and in need of funds to refurbish his space, he contacted the center's property manager. Several weeks and many phone calls and emails later, there was no substantive response. Frustrated, the owner sought advice from a business associate, who was a client of American Properties Group. His friend suggested he call us. Once APG was retained, we went directly to the owner of the shopping center, a large Real Estate Investment Trust, who was responsive to our proposal for a rent reduction and landlord supplied remodeling funds. APG was able to get our client a $200,000 check for tenant improvements, and a reduction of over $297,000 in rent on a 5 year term extension.