In today’s post, we take a detailed look at one of our most recent success stories: a challenging lease renewal negotiation that involved multiple tenants and increased property owner income by 40%.
Raymond Way Industrial Center is a 250,000 sq ft multi-tenant industrial park located at 1004-1007 East Raymond Way in Northeast Anaheim.
The property features ample parking space and provides convenient access to Southern California thanks to the surrounding State Routes 91 and 57, making it a prized option in the highly sought-after SoCal commercial real estate market.
The owner of the property approached SoCal CRE Team with a request to work with every tenant of the Industrial Center to renew their lease extension or renew the leases that had expired.
The purpose of the negotiation was twofold: To get tenants into long-term agreements and to maximize rent income.
Neither of those goals was easily achievable. More than half of the tenants of the industrial parks were on month-to-month rent arrangements. Additionally, the updated long-term lease agreements involved rent increases of 20% to 150%. The task at hand looked particularly challenging.
Negotiations were headed by SoCal CRE Team broker Gary Martinez, who devised a data-driven strategy based on education, persuasion, and patience.
Each tenant was provided with hard data about the CRE market in Anaheim that made clear that they had been paying an exceptionally low rent considering the current and recent market conditions.
Understandably, the process wasn’t entirely smooth, but the effort bore fruit.
No tenants were lost during the negotiations and no extra expenses were added to the property owner, increasing property value. More importantly, property owner income increased by 40%.
All this was achieved in the span of just 90 days, a testament to the commitment of our team and a confirmation of the crucial role that expertise plays in complex CRE negotiations.
SoCal CRE Team: The Experts in Southern California Commercial Real Estate
At SoCal CRE Team, we specialize in commercial real estate solutions for developers, investors, landlords, and tenants in the most sought-after Southern California markets such as Los Angeles, Orange County, Riverside, Anaheim, and more.
Interested in learning more? Contact us today by telephone (714) 456-0500 or email at email@example.com.