Situation
- The existing tenant is in financial difficulty
- There is a risk of the tenant going into Chapter 11 or bankrupt, meaning the premises are controlled by an administrator for up to 2 years before being returned to the landlord
Action plan proposed
- Convince the tenant to vacate
- Negotiate an early termination of the lease in return for a premium
- Market the offices to secure a new tenant at market rental levels
Result
- An agreement to terminate the lease was signed with the payment of a premium for departure of the tenant
- The premises were vacated before the tenant went into liquidation
- Offices leased to a new tenant for a rent 3 times higher than previous level
