The review of a prospective downtown client’s lease by REfocus prior to the pitch was a differentiator demonstrating the brokerage team’s value and ultimately helping to win the business by highlighting the potential lease negotiation points outlined below:
The relocation right was ongoing throughout the term; suggested it be limited to a one-time right that could not be exercised during the last 24 months of the term to limit disruption to the client.
Base Rent had been updated to market rate per a prior amendment, however the Base Years were not likewise updated, which meant the client was overpaying escalations for the remaining term.
Holdover rent was payable on a monthly basis without any reduction for partial months. Recommended that it be payable on a per diem basis.
The cap on management fees in the Operating Expense exclusions was 5% which was in excess of market rate. Suggested a cap of 3%, the market rate for management fees for like-kind buildings.
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