Kansas City, Missouri

"Many companies would like to reduce the size and/or cost of their office space but think their leases prevent them from doing so. That’s not necessarily so, said Mike Mayer, a principal with Colliers Turley Martin Tucker.

“In a down market like this, there are some opportunities on the tenant side to get creative and do some rent reduction,” Mayer said.

Toward that end, Colliers recently rolled out its Rent Reduction Program, which includes four negotiation tactics that the brokerage can take on behalf of tenants.

The first tactic involves simply asking the landlord to reduce the rent given the state of the economy and the tenant’s creditworthiness and payment history.

If that doesn’t work, Mayer said, the broker can move on to step two: seeking reduced rent in exchange for waiver of lease terms.

“There are nonmonetary terms in most leases that may not be that important to the tenant — things like termination rights or options to expand,” Mayer said. “Those things can sometimes be exchanged for immediate rent reduction.”

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About Colliers Turley Martin Tucker

Colliers Turley Martin Tucker recently completed the consolidation of its ownership structure with Cassidy & Pinkard Colliers, Colliers Pinkard, and Colliers ABR, forming a holding company that is one of the nation's largest commercial real estate service firms.  The consolidated entity operates in all 50 states, completes more than $13 billion in worldwide transactions annually, and manages more than $30 billion in real estate.  The holding company's portfolio totals 300 million square feet under property management, 210 million square feet of space for lease, and $5 billion in capital markets transactions annually.  The Corporate Solutions division sustains more than 20,000 locations for Fortune 1,000 companies and delivers a new location "Every 80 Minutes".  Colliers is the top-ranked real estate firm on the Global Outsourcing 100 companies list, IAOP Top 100.  For more information about Colliers International, a worldwide affiliation of independently owned and operated companies, visit www.colliers.com.

Contact Information

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