REALEXPLAN

Renewing a Lease in Advance

Published on Saturday, 7 September 2013 14:40:56    Written by Marc
Renewing a Lease in Advance When in charge of lease management within a large company or organization, it is only a question of time before someone from a division, department or group comes to you and asks if they could or should renew a lease ahead of time; meaning well before the agreed renewal date. I have been in this situation on many occasions where for example the head of a department or business unit would ask me if there would be some benefit for the company to renew and extend our lease ahead of schedule. The idea of course was usually to find savings. However, sometimes it was also to guarantee a strategic advantage over the Landlord by making sure we would be able to extend our lease under favorable conditions. It is never wise to wait until the end of a lease to negotiate!

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The True Cost of a Few Words

Published on Thursday, 22 August 2013 10:10:19    Written by Marc
The True Cost of a Few Words Back a few years ago in a previous life, we were closing down a manufacturing site which had about nine years left on the lease. This was a large site with over 350,000 square feet of industrial space on the East Coast of North America. When the decision to close the site came, I naturally went back to the lease to verify what special clauses we would have to deal with. In all fairness, this lease had come with an acquisition that included many properties/leases, so we had not negotiated the leases, we simply took them "as is" at the time of the acquisition. Read More

Real Estate - Restoration Clauses

Published on Thursday, 11 July 2013 09:27:11    Written by Marc
Real Estate - Restoration Clauses

Don’t forget the restoration clauses. Read them c-a-r-e-f-u-l-l-y.

Leasing 101. Question: what is a restoration clause?

Answer: - it’s a clause in a lease that tells you what you will need to restore at the end of the lease. Fair enough, a restoration clause is normally a clause in a lease that will inform the tenant what are his obligations at the end of the lease. Technically this would be a simple but sound definition.

So, if it’s so simple, we can assume that all tenants read the clause and take appropriate action for when the time comes, any cost associated with the clause is already known and provisioned as part of their lease management. Yes?

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So Here We Are

Published on Tuesday, 2 July 2013 11:52:25    Written by Marc
So Here We Are

This is the first of what we hope will be a long series of articles, comments, and interesting exchanges. It is here that we will be providing you with tips, advice stories and experiences, good and bad, relating to our various fields of expertise: Real estate, Energy management, Capital expenditures, capital planning, and a few others.

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