1.) A Landlord of a “Midtown Building” assumes the Tenant is a captive tenant. With one week remaining on the lease term, the Landlord proposes a 5 year extension with the same terms and conditions of the existing lease. DAK establishes that the Landlord’s proposal is 35% above the current market. Within one week DAK negotiates a savings of $130,000 per year plus an escape clause which provides the Tenant the option to vacate the premises before the lease expires.
2.) Not For Profit Organization (NFP) was contacted by its Landlord with 7 years remaining on its lease. Landlord desired to sell the building to a residential developer but the sale was subject to the NFP vacating its space. The NFP had a below market value lease and was the last tenant in the building. DAK was contacted and retained as the exclusive broker for the NFP to locate and secure new office space. Working closely with the NFP’s attorney while negotiation went on with its current Landlord, DAK identified several spaces and new Landlords that were able to offer a full build out and enabled the Landlords to understand the added value the tenant brought to the property.
Success occurred by timing the signing of the new lease after the “buy out” of the undervalued lease was completed. As a result the Tenant walked away with $$$ in their coffers and the negotiated transaction on the new space resulted in the NFP paying less rent on an annual basis because it was willing to be a trailblazer and move into an area out of its comfort zone. Other NFPs have since followed…
3.) The Tenant an accounting firm was referred to DAK
What appeared to be a straight forward lease requirement for a group of accountants turned challenging when the commercial real estate market seemed to be increasing value on a weekly basis if not a daily basis. While DAK was establishing what the program was for the accountants it became clear the two active partners were commuting into opposite locations: one into Grand Central and the other into Penn Station. Their current location was on the east side in the low 30’s. Rent in that area had already been reaching new highs and the tenant did not want to move downtown even with the incentives that were being offered after 9/11. DAK identified several possibilities and started to show space just west of 5th Avenue and then west of 6th Avenue. Each time the tenant liked what they saw but when they located a space 2 blocks from Penn Station one of the partners did not want to be there. Solution, DAK analyzed, compared, identified other accounting firms, prospective clients and spaces in and out of the area under consideration, an informal survey was conducted and it became clear that accountant’s clients from the eastside would not be lost because of the relocation. The analysis and survey assisted the partner and addressed his doubt about the area which led to the signing of a 10 year lease. Follow-up: The Tenant is currently looking to expand with-in the building. The accounting firm continues to be an exclusive customer of DAK's.