Any successful negotiation hinges largely on leverage. When it comes to a lease renewal for a healthcare professional the same rings true! Our model has saved our clients millions of dollars since 1996 and I would like to specifically enumerate a couple of “real life” examples below.
How HPRG Saved its Medical and Dental Clients Millions
A few years back a dental client of ours in Washington DC was paying an over market rate with about a year and a half left on his lease. His space was 2500sf and his rent was $52psf. At that time market rent in his building was $45 psf. Since we handle hundreds of transactions a year we knew his landlord would do a deal at $45psf. Moreover, we told his landlord if he was not willing to reduce the rent our client would move. We had enough time to make this happen. In this scenario the landlord agreed to drop the rent $7 psf, pay for new paint and carpet and give our client a couple of months of free rent. Over the next 10 years we saved our client $175,000! The most important aspect of this deal is that the landlord paid our fee so their was no cost to our client.
Dental Surgeon Office Space
A few months back we effectuated a similar task for an Oral Surgery group in Maryland. Our client was in 7500sf and paying $10 psf over the market. The client had two years left on his lease but the vacancy in the market allowed us to negotiate an early renewal. We dropped the rate $10psf, got the landlord to give our client $25psf to renovate the suite and give us four months of free rent. The combination of rent savings, tenant improvements and free rent added up to a staggering $1.2 million over the next ten years!!!!!!!! Again, at no cost to our client.
The results are not always this dramatic but we can always effect significant savings at no cost to our clients. Go to our website at www.hprgrealty.com to learn more or reach out at firstname.lastname@example.org.