Sensory Interactive

Challenge

• The tenant leases office space in a desirable building/area with a landlord who exhibits inflexibility regarding negotiations.
• The tenant attempts direct negotiations with the landlord for a downsize and term extension, but negotiations stall, and no progress is made toward the tenant’s goals.
• Time affords leverage for tenants in this situation, and with <2 months remaining on the lease, this tenant was in serious need of help when ECR was engaged.

Action

• Once engaged, ECR took immediate and swift action to shift the balance of leverage in the tenant’s favor.
• Viable alternative office options in proximity were identified, qualified, and toured within one week of ECR’s engagement.
• ECR’s strong knowledge of the market and good relationships with the brokerage community were paramount during this step.
• Terms proposals were opened with the best alternative options, creating leverage to negotiate better renewal terms with the tenant’s current landlord.

Results

• By engaging other options in the market, ECR could create leverage and negotiate a ~15% reduction in rental rate compared to the terms that stood between the landlord and our tenant client before ECR’s engagement.
• Swift action, ECR’s relationships/network, and thoughtful communication were all key ingredients in this success story, and we want to thank our client for their focus and attention during this process, which helped make it possible.