Lease Renegotiation for Global 3PL Client
Introduction
A Global 3PL Client in Central Pennsylvania sought our help to renegotiate their lease with three years remaining. They aimed to co-terminate their lease with their contracted end-user but faced resistance from an unyielding landlord in an area with less than 10% vacancy.
Challenge
Our client's direct attempt to buy out their existing lease failed. They were constrained by a landlord-friendly lease in a low-vacancy area, significantly impacting their costs. The inability to negotiate better terms was putting financial strain on their operations.
Solution
We swiftly sought competitive proposals from other properties, creating leverage with the current landlord. This strategy enabled us to successfully negotiate a buy-out of the existing lease and secure a new lease with immediate effect. The result was a 20% reduction in rental rates and a shift of certain costs from the client to the landlord. We achieved total savings in rent and cost avoidance exceeding $2,000,000, all within three weeks. This efficient solution not only met the client's goal of co-terminating their lease but also significantly improved their financial position.
