Raleigh Neurology was proceeding with the execution of a renewal option at a fixed, higher rental rate, rather than negotiating more favorable renewal terms. Further, Raleigh Neurology was set on a five-year lease and it seemed improbable an owner would invest the necessary improvement funds over such a short term.
Many tenants believe the best avenue to leasing medical office space is to stay-put, avoid moving, and handle their lease negotiations internally. Often, this puts strain on physician time and resources, and may not be the most financially adventitious option.
Davis Moore coordinated with the Operations Manager to understand the priorities of the business. We reviewed Raleigh Neurology’s existing lease and renewal proposal as part of our proven process. We uncovered that Raleigh Neurology was paying rent for space they didn’t use and were not going to receive market concessions in exchange for their new lease commitment.
As part of our process, Davis Moore advised Raleigh Neurology in a market search and evaluated alternative locations. Our competitive search generated necessary leverage and forced Raleigh Neurology’s current landlord to quickly maneuver and present more favorable terms.
Without burdening a single physician, Davis Moore reduced rent expense by thirteen percent – an average annual savings of $40,000. The physicians spent no extra time but reaped the financial rewards.