701 Market Street, Philadelphia, PA
Challenges
- Client preferred to renew its lease for a long term; however, the landlord would offer only a short-term renewal.
- Client’s “sweet spot” for revenues was in the heart of Center City Philadelphia.
- Time saved in transporting enforcement officers to and from their areas of responsibility would enable them to write more tickets and increase revenue. Additional revenue would cover the cost of rent at the new facility.
- Client settled on two potential locations, although the first choice was the clear favorite. During final lease negotiations, the prospective landlord in the favorite choice announced that it planned to buy the second choice of buildings and put the Client there. This was unacceptable to the Client.
Solutions
- Brad learned that a suitable space adjacent to the first choice had just been placed back onto the market. Lease on that space was signed 27 days after the initial tour.
- Same financial terms as the lease originally negotiated with the “first choice” landlord. New space is 33% larger, with rental expense that will be lower in year 25 than in the last year of the original lease.