Tenants should always have expert representation when negotiating office leases, especially with their current landlord. Landlords historically treat existing tenants as ‘captive markets’, because they believe there is a 70% chance that they will not relocate, and many of these transactions are done absent concessions. With an expert tenant rep at the helm, landlords know that tenants are familiar with the market and their options. Landlords will likely pay much less recognizing a tenant rep at a renewal-based rate and providing some concessions to their tenant than paying full agency fees, providing a full build-out to a new tenant, providing extra Rent abatement to incentivize new tenants and possibly having their space vacant for north of a year before a new tenant’s lease commences.
