Article for MBAC, July 14, 2010 – by Kent Lamm, http://www.pmcre.

com/bio-
kentlamm.htm

The silver lining for your bottom line

Read any article today about office markets and you will find tales of woe for

many landlords. In the alternative, these same tales contain a silver lining –

the great deals that office tenants are finding in today’s market. Instead of

woe, they have their own tale of WOW!

As a general rule, office leasing rises and falls with employment numbers. As

a commercial real estate broker, most of my time is spent leasing and selling

office space in Charlotte. I could review for you numerous statistics for the

various office markets in the Carolinas, but suffice it to say that there are a

number of landlords with some seriously empty buildings. These high

vacancy rates add up to some unprecedented opportunities for you as a

tenant.

Let’s discuss several strategies to take advantage of today’s market, and to

quickly lower your costs and immediately increase your profits.

First, examine your current lease carefully. And then, have a trusted

commercial real estate expert review your lease. If you have two years or

less to run on your current office lease, you are in a great position to do an

early renewal of your current lease. We have assisted several clients

recently with this “blend and extend” strategy, creating a win-win for both

you and your landlord. You get a lease rate TODAY that is lower than your

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 Article for MBAC, July 14, 2010 – by Kent Lamm, http://www.pmcre.com/bio-
kentlamm.htm

current rate. Your landlord gets a longer term lease, giving him greater

certainty for the future. And while you are negotiating a new lease to stay in

place, you can also negotiate for those additional terms and clauses that

you’ve also always wanted (expansion rights, termination rights, new carpet,

exclusivity as to use in the building, etc.) and have those put into your new

deal.

Does your current lease have an early termination clause? Even with a

penalty? If you are open to making a move, there are landlords that will

gladly buy out your current lease in order to move you to their building.

Likely you’ll get new carpet, new paint, and other new finishes, too, as well

as a lower lease rate, or a better building and space for the same amount

that you are currently paying.

Look for sublease space. Great deals can still be had on sublease space.

This is office space currently leased by another tenant, who does not need

the space any longer. Big discounts are the rule. Furniture and phone

systems are often included, too, for another significant cost savings. We are

still seeing deals for sublease office space at 30+% discounts. Subleases can

be useful if you need a shorter term lease. Perhaps you want to open a

second office location to see how it works. A short term sublease could help

limit your exposure.

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 Article for MBAC, July 14, 2010 – by Kent Lamm, http://www.pmcre.com/bio-
kentlamm.htm

Get some space planning help. How well is your current office

configuration working for you? Could you operate in an office that is smaller

through better space planning? That could free up space in your current

office that you could offer into the market as a sublease Or, if it is renewal

time on your current lease, make sure that you look carefully at what space

you really need now. Perhaps reduce your footprint for more cost savings in

the short term. Then, make sure you secure expansion options for the future

growth that you’ll likely have in a year or two.

Explore an office purchase. There are also great deals out there on offices

for sale, too. You need to do a careful analysis to see if this is the right move

for your firm, but under the right conditions, it could be a real cost savings.

These are just a few of the many strategies that we’ve successfully

implemented for clients in the current market. While we are still having

endless debates on when the economy will improve, when the mortgage

business will improve, and when commercial real estate leasing will tighten,

I can offer one bit of certainty. Today’s office rates represent tremendous

bargains. Savings can be realized today in many cases, giving you a quick

boost to your bottom line. I encourage you to call your commercial broker to

explore the possibilities. Just like you, I’m advising clients to act now – we

may not see rates this low again in our lifetimes.

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 Article for MBAC, July 14, 2010 – by Kent Lamm, http://www.pmcre.com/bio-
kentlamm.htm

Kent Lamm is a Commercial Real Estate Broker in Charlotte with Percival

McGuire Commercial Real Estate, with a particular emphasis on office

leasing. Kent can be reached at klamm@pmcre.com and 704-632-1014.