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 to mere figure heads, with their lenders already having taken control of their buildings, because their lenders may be uncertain as to their future plans for those buildings

18.   Landlords or lenders, where the building may already be in the bankruptcy process, that may be legally unable to modify current lease contracts

19.   Landlords or lenders that may be experiencing other business or legal challenges that cause significant distraction

20.   Landlord’s whose primary business may be something other than real estate and may cause too much distraction for them to be responsive to tenants’ request

21.   Landlords that may have entered into contracts of sale for their buildings and cannot or will not modify existing leases

22.   Landlords that are actively engaged in refinancing their buildings and prefer to wait until that initiative is complete before engaging in discussions to renegotiate any leases

23.   Landlords whose staffs are overwhelmed with lease renegotiation and other requests and cannot focus on new requests

24.   Lenders who don’t support or won’t fund lease renegotiation transactions

25.   Lenders who are so overwhelmed with debt expirations, renegotiations, and foreclosures, and in some cases, their own survivability, that they are unable to respond to landlord requests in a reasonable time frame, if at all

26.   Tenants who may be viewed by the landlord or lender as being unstable, risky, or unworthy from the perspective of their finances, credit, reputation, or otherwise

27.   Tenants who may be too small to have a positive impact on the building, its value, or the landlord

28.   Tenants whose space may be desired by another tenant

29.   Tenants whose industry, image, or style of business may no longer be conducive to the landlord’s plans for the building

30.   Tenants in a building where the landlord may prefer to empty it and demolish it or convert it to some alternative use

31.   Tenants that offer too short an extension term to create any real value for the landlord

32.   Tenants that demand too many concessions to result in an economically viable transaction for the landlord

So, even in this horrible economic environment, lease renegotiations don’t always make sense.  Landlords, lenders, and tenants, each have good reason to say “No!” at one time or another.

Tenants:  Why have landlords said “No!” to your company?

Brokers:  Why have landlords said not to your tenants?

Let me know.

Read Part One of this Post.


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About Real Estate Strategies Corporation
Real Estate Strategies Corporation is a respected corporate advisory and transaction services firm that provides thought-leadership, decision-making, planning, project management, and transaction execution services to finance and senior executives at management team-led public, private, and portfolio companies, and not-for-profit organizations.  Under the leadership of its award-winning CEO, Andrew Zezas, RealStrat’s clients engage the firm when acquiring, disposing of, renegotiating, or enhancing occupied leased or owned real estate in New Jersey, Pennsylvania, New York, Connecticut, and throughout North America.  By creating and executing Business DRIVEN Real Estate Solutions and identifying hidden Opportunities, RealStrat drives greater operational and financial performance in support of its clients’ stakeholder objectives, M&A requirements, and exit strategies.

In the current economic environment, RealStrat’s efforts are focused on uncovering, capturing, and re-purposing hidden liquidity and minimizing risk in its clients’ leased and owned real estate.  The firm provides counsel as to competitive advantage strategies in preparation for the eventual economic recovery.  Visit Follow CFO Studio at


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