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Tyler Donegan Helps Reduce Clients' Lease Rates with "Blend & Extend"
Tyler - Donegan Helps Reduce Clients’ Lease Rates with “Blend & Extend”

TYLER- DONEGAN CORPORATE ADVISORY GROUP
Frederick, Maryland – Chad Tyler announced three new client assignments through the Tyler – Donegan Corporate Advisory Group. Chad Tyler, Managing Partner noted, “We have renegotiated more than two million square feet of corporate leases through our ‘Blend & Extend’ program. ‘Blend & Extend’, or ‘lease recasting’, simply means renegotiating a company’s current lease by extending the term, therefore realizing significant cost savings in the present.”

Jeff Cahall, the partner in charge of the Corporate Advisory Group stated, “Every corporate executive is interested in cutting costs and improving efficiencies, especially in this difficult economic environment. Real estate costs are typically the second or third largest cost component of the company’s expenses, but often one of the hardest line items to control. An experienced corporate real estate advisor can take a company through the process, often resulting in a significant discount to current costs. We are seeing many landlords willing to negotiate 15% to 35% reductions in a tenant’s lease costs.”

Two years ago, this strategy was not a viable alternative for corporate users because occupancy rates were high, the economy was strong and landlords had the leverage. But the world has changed and according to Chad Tyler, “When we renegotiate an existing lease using ‘Blend & Extend,’ it is a win-win strategy for both the tenant and the landlord. Landlords are also beginning to view the ‘Blend & Extend’ option with increasing enthusiasm. They are now open to the idea of negotiating a new ‘Blend & Extend’ lease, rather than face the prospect of losing a quality tenant and having to compete with other landlords for the limited number of tenants in this depressed market.”

Another major benefit to the “Blend and Extend” program is that it allows tenants to rethink their space needs. Tenants have a fresh opportunity to evaluate how they can better utilize the space they are paying for. “Our experience working with architects and space planners has taught us that, frequently, the tenant’s overall space needs can be reduced,” stated Chad Tyler.

For more information contact Chad Tyler at 301-831-8575.

 
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