Listen to Our BlogsTubelite: Effective Tenant Representation for Lease Renewal in Indianapolis
Client Profile:
Tubelite, leasing a 19,200 SF office-warehouse space in Park 100, Indianapolis, faced the challenge of renewing their lease amid a global pandemic. Despite the strong industrial market and record-low vacancy rates, Tubelite preferred to avoid relocation while still achieving favorable lease terms.
Tubelite & Allies Partnership:
John Myklusch, CFO of Tubelite, recognizing the need for strategic real estate guidance, engaged Adam Stephenson for the lease renewal process. Adam’s proactive approach was crucial in creating leverage for negotiations with the existing landlord.
Opportunity and Challenge:
The lease renewal for Tubelite was set against the backdrop of a challenging industrial market characterized by record-low vacancy rates and escalating rental costs. The initial renewal proposal from their current landlord presented a steep 37% increase over the previous year’s rental rate. This situation was further compounded by Tubelite’s preference to maintain their current location while navigating cost, location, and labor considerations, demanding a nuanced and well-strategized approach to their lease negotiation.
Analysis:
Adam identified an alternative space in the market, similar in size and location, with a competing landlord. This discovery was instrumental in creating adequate leverage to negotiate favorable terms with Tubelite’s existing landlord.
19,200 SF office-warehouse space in Park 100, Indianapolis, IN
Our Success Stories:
- Utilized alternative market options to strengthen negotiation position.
- Ensured the client’s needs and preferences were central to the negotiation strategy.
Results:
- Negotiated a comprehensive Tenant Improvement package, enhancing the office and warehouse space.
- Achieved a market rental rate in a rising market, securing significant cost savings over a five-year term.
- Avoided substantial moving expenses, ensuring Tubelite’s operational continuity.
Conclusion:
The successful lease renewal for Tubelite underlines the importance of proactive tenant representation by Allies Commercial Realty. Our strategic approach, market knowledge, and negotiation skills enabled Tubelite to secure favorable lease terms despite challenging market conditions. This case exemplifies our commitment to client-focused solutions and our expertise in navigating complex lease negotiations in the commercial real estate sector.
I was extremely pleased with the outcome of this lease renewal. Adam was able to save us thousands of dollars off our base rent, plus he was able to negotiate a TI package that allowed us to update our space. Most importantly, he gave us the peace of mind that we were receiving a more than fair deal.
John Myklusch
CFO
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