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Lease renewals in the “new normal”? Tenants are now valued customers.

Aug 15, 2022

Guest Post by Sara Stanley, MCR, Managing Director, Commercial Tenant Services, Inc.

And you know what they say about customers. . . well, not always right, but tenants certainly have more influence in today’s environment. This shift allows many Lessees who are making transactions (including amendments, estoppels, extensions, etc.), an opportune time to request a transparent view of the financial terms of a tenant lease.

For most companies, looking to lease additional space has come to a screeching halt. What about renewing your space? Renewals mean something quite different now than prior to 2020. It can be an ideal time to renegotiate square footage, critical dates, and other terms.

An added in-depth understanding of the financial implications of your current lease terms also allows for additional insight, potential refunds, and leverage when negotiating new go-forward terms, creating pro-tenant protections and flexibility in this changing landscape. 

Property owners and management companies are no longer “Lords of the Land” and the days when tenants were just “temporary occupants” are over. Many Landlords are now strapped for cash – this change is naturally transforming the once enormously powerful institution to entities that must comply and negotiate better and equitable terms for their customers.  

Lease renewal is the perfect opportunity for a deep dive review by a conflict-free lease audit team (e.g., all alliances and arms of the firm working only for tenants).

Sara Stanley, MCR, is Managing Director, Commercial Tenant Services, Inc.

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