Case Study

Industry: Healthcare Practice

Region: Northeast United States

Assignment:

Renegotiate lease for orthopedic surgeon's office located in a hospital complex. Due to the specialized nature of this practice, relocating was not a viable option.

Approach:

• Meet with doctors in the practice, who had occupied the space for 10 years. Review past lease terms as well as operating expenses and utilities costs.
• Evaluate current use of office space to assess efficiency and recommend improvements to the facilities.
• Contact landlord to communicate tenant's needs and discuss how regulatory issues would impact the lease rate.
• Conduct comprehensive market analysis of comparable spaces to determine fair lease value.
• Negotiate and secure lease.

Outcome:

The client signed a lease that substantially reduced rent, included significant tenant improvement dollars, limited the rate of rental increase over the next 10 years and complied with Stark Laws.

Before consulting with SRC, the tenant was prepared to accept the landlord's original terms. Thanks to their renegotiated lease, the client saved over $300,000 (even after factoring in consulting fees to SRC).