The landlord of a single-tenant national tire retailer, Firestone, required an experienced contract negotiator who could secure a long-term lease with attractive financing at a high rental rate. The property was a thirty-year-old building that was not originally a built-to-suit for the tenant. The site held strong demographics and traffic readings that largely contributed to the corporate tenant’s success at the location. With the lease expiration quickly approaching in under one year, the tenant expressed interest in extending the lease under what they believed to be average lease terms for the market. The client’s strong-willed corporate tenant was negotiating for a 17% reduction in annual rent for only a five-year lease term extension. The reduction threatened the client’s cash flow and livelihood. Given the tenant’s drastically undervalued terms, the client turned to Matthews™ to negotiate the lease on their behalf.
Understanding that tenants often carry out a lengthy negotiation period with the intent of stressing a landlord into accepting a below-market rental rate, the Matthews™ advisor strategically enacted a surefire negotiation plan to quell the client’s panicked concerns. Matthews™ leveraged long-standing relationships to engage in direct communication with the tenant corporation. With access to one of the largest databases of market comparables, and tactful and robust lease contract negotiation services, Matthews™ and the parties underwent the lengthy discussion with top-management to identify average lease terms and sales information.
Matthews™ redefined the client’s expectations through expediting the process by utilizing relationships with the tenant corporation, researching and understanding the value of the client’s property along with the estimated value of market comparables. Ultimately, the client benefitted from an unexpected 40% increase in equity, a 29% increase in annual rent, and a double in their lease term length from 5 years to 10 years. Matthews™ addressed all the client’s concerns and improved and secured their investment position, thus allowing them to sustain their retirement lifestyle.
“Matthews™ listened to my needs and lent the knowledge, expertise, and superior negotiation tactics required to improve my investment position.”