Lease Flexibility: When Rents have Declined Since You Signed the Lease

​For many companies leasing space in the ‘Mid Counties’ SoCal industrial market, especially those whose leases commenced sometime between three (3) and four (4), they may have noticed a significant drop in lease rates.  From the peak of four (4) yeas back, lease rates have dropped substantially across the board, and significantly in some sectors or building types.  While the ‘big box’ sector of the market, those buildings over 100,000 SF, has seen the sharpest reduction rates and rise in move in incentives, all sizes of buildings have experienced similar trends.

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If your company is in the market right now, actively looking to lease a building, you may be saying, ‘great, what timing for me!’  However, if you signed a lease and have 1-3 years left with those higher lease rates, you may be saying, ‘great, what am I supposed to do about that?’


In either situation, that is what we are here for.  We are here to help you through those projects, to evaluate decision, to help make your life easier, and to help make you more money.  Call us today to see how we can help you find space and negotiate an opportunistic transaction for your company.


In particular, if you are in the situation with term left on your lease, we have ideas for you too.  First, let us consider these questions. Is your property still working out well for you, with no need to change locations?  Would you like to get your rent down to these lower market levels much sooner?   Would you like to get out of your lease and purchase  a property?  These are some initial questions we want to hear from you about, so that we can determine which approach is best to implement.  We have successfully assisted many clients in these exact scenarios, in both previous market cycles and our present.


Both landlords and tenants can benefit from having these discussions regarding the longer term strategy on lease renewals much earlier.  Benefits range from financial to operational. We will help simplify the process and provide efficiencies for both sides, so you can continue to focus on your core business.  Therefore, it is never to early to start having these evaluations.  In fact, on the tenant side of this consideration, it is actually better to start sooner than later, so you can keep even more options open.


Call us today to discuss.