Can you still get an incentive, when the lease doesn’t expire for another 2 years??
ABSOLUTELY YOU CAN! In September, 2012 we acted for a publicly listed Company who needed to undertake some necessary refurbishment works on their 750 sqm Circular Quay ‘A’ grade tenancy.
Their head count increased significantly after new acquisitions in their businesses. A massive logistical problem existed, as they still had 2 years to go on their lease, they doubted the landlord would grant them an extension WITH a market incentive to boot. In came Maunsell Property Consultants, who sold the idea to the landlord with a positive spin for him.
While we are bound by confidentiality, we were able to reduce the rent by 12%, we also locked in a 22.5% incentive for the next 5 years, and also got the landlord to install brand new bathrooms and carpet on the floor, in addition to the 22.5% incentive!
THIS REALLY HAPPENED I’LL SHOW YOU THE DEAL WITH CONFIDENTIALITY PREMISSION. Cost to tenant for acting for them = $4,900. Bottom line to tenant = $657,000 better off. Could it have been this deal that helped the share price spike by over 40%??