Every day, well-run companies strive to improve their credit ratings. Banks search for companies to whom they wish to lend, based on their credit and many other factors. Investors, landlords, business partners, companies selling products or services, rating agencies, and information consolidators, all spend countless hours analyzing the creditworthiness of companies, searching for the best [...]
Corporate Real Estate
In companies of all sizes, occupied real estate is of strategic importance, impacting the efficiency, profitability, growth and success of the enterprise. Finance executives recognize the critical importance of aligning real estate to support and promote their companies’ financial, operational, M&A, exit, and other stakeholder-directed objectives. Real Estate Strategies Corporation is at the forefront of advising its clients as to the optimal approach to planning and executing real estate in the true context of its clients’ corporate objectives.
Real Estate Strategies Corporation is a sponsor and majority funder of CFO Studio. Visit http://www.RealStrat.com
Last week we discussed the first 15 of 32 Reasons Why Landlords Sometimes Say “No!” to Lease Renegotiation Transactions. Below are the remaining 17 reasons: 16. Landlords who may be in default of their debt covenants or whose relationships with their lenders are so strained that they have difficulty securing approvals 17. Landlords who have been reduced [...]
Lease renegotiation transactions are not absolute. They can prove profitable for both tenant and landlord when orchestrated properly. They can also fail miserably when inappropriately executed. Neither landlord or tenant are obligated to enter into a renegotiated lease, and would only do so if such a transaction made sense. Lease renegotiation transactions don’t always work, [...]
Lease renegotiations, restructures, recasts, blend and extends… these and others are the terms in use today by brokers, tenants, and landlords for what amounts to the same type of transaction… changing the terms of existing leases. Today, with the market for new real estate transactions being quiet, most active commercial brokers are pitching lease renegotiations. [...]
While some landlords say “No!” to tenant requests to renegotiate their leases, many tenants will have a similar reaction to landlord requests to renegotiate leases. In most cases, a tenant’s negative reaction is due to an imbalance in the perceived benefits the tenant would derive from a renegotiated lease versus the additional obligations the transaction would create. Multiple reasons [...]
